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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Centuria Capital Group (ASX:CNI), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Centuria Capital Group
The Last 12 Months Of Insider Transactions At Centuria Capital Group
The Independent Non-Executive Director Kristie Brown made the biggest insider purchase in the last 12 months. That single transaction was for AU$453k worth of shares at a price of AU$1.82 each. That implies that an insider found the current price of AU$1.91 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Centuria Capital Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Centuria Capital Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Centuria Capital Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Centuria Capital Group. In total, insiders bought AU$549k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Centuria Capital Group
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. It appears that Centuria Capital Group insiders own 8.6% of the company, worth about AU$137m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Centuria Capital Group Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Centuria Capital Group. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Centuria Capital Group has 2 warning signs we think you should be aware of.