Insiders purchases in Codan Limited (ASX:CDA) last year yet to pay off, remain down AU$73k despite recent gains

·3 min read

Insiders who bought AU$555k worth of Codan Limited (ASX:CDA) stock in the last year recovered part of their losses as the stock rose by 7.3% last week. However, total losses seen by insiders are still AU$73k but in since the time of purchase.

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.

View our latest analysis for Codan

The Last 12 Months Of Insider Transactions At Codan

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Alfonso Ianniello bought AU$182k worth of shares at a price of AU$6.70 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$7.16. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Codan share holders is that insiders were buying at near the current price.

While Codan insiders bought shares during the last year, they didn't sell. Their average price was about AU$8.24. This is nice to see since it implies that insiders might see value around current prices. 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!

insider-trading-volume
insider-trading-volume

Codan is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Codan Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Codan. Specifically, MD, CEO & Director Alfonso Ianniello bought AU$288k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership of Codan

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. Codan insiders own about AU$561m worth of shares (which is 43% of the company). 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 Codan Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Codan. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Codan you should be aware of, and 1 of these shouldn't be ignored.

But note: Codan 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting