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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Celsius Resources Limited (ASX:CLA).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for Celsius Resources
Celsius Resources Insider Transactions Over The Last Year
Non-Executive Director Laurent Raskin made the biggest insider purchase in the last 12 months. That single transaction was for AU$191k worth of shares at a price of AU$0.055 each. So it’s clear an insider wanted to buy, at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price.
In the last twelve months insiders paid AU$291k for 4.17m shares purchased. In the last twelve months there was more buying than selling by Celsius Resources insiders. The average buy price was around AU$0.07. I’d consider this a positive as it suggests insiders see value at around the current price, which is AU$0.061. You can see a visual depiction of insider transactions over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Celsius Resources Have Bought Stock Recently
It’s good to see that Celsius Resources insiders have made notable investments in the company’s shares. We can see that Laurent Raskin paid AU$191k for shares in the company. No-one sold. This makes one think the business has some good points.
Does Celsius Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Celsius Resources insiders own 18% of the company, currently worth about AU$8.3m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.