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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Cabka N.V. (AMS:CABKA), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Cabka
Cabka Insider Transactions Over The Last Year
The Independent Member of Supervisory Board Stephan Nanninga made the biggest insider purchase in the last 12 months. That single transaction was for €57k worth of shares at a price of €5.34 each. That means that even when the share price was higher than €2.06 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Cabka insiders may have bought shares in the last year, but they didn't sell any. Their average price was about €3.83. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) 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!
Cabka is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Cabka Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cabka insiders own 53% of the company, currently worth about €27m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Cabka Tell Us?
It doesn't really mean much that no insider has traded Cabka 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, Cabka insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Cabka you should be aware of, and 1 of them can't be ignored.