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Investors who take an interest in City Chic Collective Limited (ASX:CCX) should definitely note that the Independent Non-Executive Chairman, Michael Graham Kay, recently paid AU$3.84 per share to buy AU$192k worth of the stock. Although the purchase only increased their holding by 7.1%, it is still a solid purchase in our view.
Check out our latest analysis for City Chic Collective
The Last 12 Months Of Insider Transactions At City Chic Collective
In the last twelve months, the biggest single sale by an insider was when the insider, Michael Hardwick, sold AU$373k worth of shares at a price of AU$4.15 per share. That means that an insider was selling shares at around the current price of AU$3.91. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Michael Hardwick.
Over the last year, we can see that insiders have bought 123.91k shares worth AU$469k. On the other hand they divested 90.00k shares, for AU$373k. In the last twelve months there was more buying than selling by City Chic Collective insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
City Chic Collective is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of City Chic Collective
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.8% of City Chic Collective shares, worth about AU$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About City Chic Collective Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of City Chic Collective we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that City Chic Collective is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...