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Insiders were net buyers of CVC Limited's (ASX:CVC ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for CVC
CVC Insider Transactions Over The Last Year
The Executive Director John Leaver made the biggest insider purchase in the last 12 months. That single transaction was for AU$20m worth of shares at a price of AU$1.93 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$2.15. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
CVC 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 CVC
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. CVC insiders own about AU$113m worth of shares (which is 45% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About CVC Insiders?
It doesn't really mean much that no insider has traded CVC shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, CVC insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for CVC you should be aware of.
But note: CVC may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.