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 Chorus Limited (NZSE:CNU), that sends out a positive message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Chorus
The Last 12 Months Of Insider Transactions At Chorus
Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer Jean-Baptiste Rousselot for NZ$532k worth of shares, at about NZ$7.72 per share. That means that an insider was happy to buy shares at around the current price of NZ$8.57. 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. Happily, the Chorus insiders decided to buy shares at close to current prices. We note that Jean-Baptiste Rousselot was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 237.35k shares for NZ$1.8m. On the other hand they divested 85.35k shares, for NZ$663k. In the last twelve months there was more buying than selling by Chorus insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Chorus Have Sold Stock Recently
The last three months saw significant insider selling at Chorus. In total, Chief Technology Officer Ewen Powell dumped NZ$105k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Chorus insiders have about 0.2% of the stock, worth approximately NZ$6.9m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Chorus Insiders?
An insider sold Chorus shares recently, but they didn’t buy any. On the other hand, the insider transactions over the last year are encouraging. But insiders own relatively little of the company, from what we can see. So overall it’s hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Chorus. To help with this, we’ve discovered 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Chorus.
Of course Chorus may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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