Bullish Clicks Group Insiders Loaded Up On R10.6m Of Stock
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 Clicks Group Limited (JSE:CLS), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Clicks Group
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Bertina Engelbrecht bought R4.7m worth of shares at a price of R235 per share. So it's clear an insider wanted to buy, at around the current price, which is R247. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Clicks Group share holders is that insiders were buying at near the current price.
While Clicks Group insiders bought shares during the last year, they didn't sell. 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!
View our latest analysis for Clicks Group
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Clicks 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. We usually like to see fairly high levels of insider ownership. Based on our data, Clicks Group insiders have about 0.07% of the stock, worth approximately R41m. We prefer to see high levels of insider ownership.
So What Do The Clicks Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Clicks Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Clicks Group and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Clicks Group, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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