Insiders Enjoy AU$880k Return After Buying City Chic Collective Stock
City Chic Collective Limited (ASX:CCX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. After taking the recent loss into consideration, the AU$4.1m worth of stock they bought is now worth AU$5.0m, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for City Chic Collective
City Chic Collective Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Brett Blundy bought AU$1.5m worth of shares at a price of AU$0.45 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.56. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
City Chic Collective insiders may have bought shares in the last year, but they didn't sell any. 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!
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.
Does City Chic Collective Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that City Chic Collective insiders own 13% of the company, worth about AU$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About City Chic Collective Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in City Chic Collective and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with City Chic Collective and understanding them should be part of your investment process.
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, 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.
