Over the past year, a number of insiders have significantly increased their holdings in Corporate Travel Management Limited (ASX:CTD). This is encouraging because it shows that insiders are more optimistic about the company’s prospects.
While we would never suggest that investors base their decisions solely on what a company’s executives are doing, logic dictates that you should pay some attention to whether insiders are buying or selling stock.
Check out our latest corporate travel management analysis
Corporate Travel Management Insider Transactions in the Past Year
Over the past year we can see that the biggest insider purchase was from MD & CEO Jamie Ferrus for A$1.4 million worth of shares, at around A$15.98 per share. So clearly an insider wanted to buy at around the current price which is AUD$15.99. Of course, they may have changed their mind. But that suggests they are optimistic. We always like to see insider purchases, but it’s worth noting if those purchases were made well below today’s share price, as the discount to value may have diminished with the rising price. Fortunately, insiders at Corporate Travel Management decided to buy shares at close to current prices.
In the last twelve months, insiders purchased 90.90 thousand shares for AUD 1.5 million. On the other hand, they sold 59.28 thousand shares worth AUD 1.3 million. Over the last twelve months, there were more buying than selling by Corporate Travel Management insiders. You can see insider trading (by company and individual) over the past year shown in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, the individuals and the date!
There are many other companies that have insiders buying stock. You probably do no i want to skip this Free of charge list of growth companies that insiders are buying.
Corporate Travel Management insiders recently bought shares
The past three months have seen significant insider buying at Corporate Travel Management. MD and CEO Jamie Ferrus has spent A$1.4 million on shares and there have been no sales. This shows some optimism about the company’s future.
Internal ownership
I like to look at how much stock insiders own in a company to help inform my opinion of how aligned they are with insiders. Generally, the higher the insider ownership, the more likely the insiders will be incentivized to build the company over the long term. Corporate Travel Management insiders own 13% of the company, which is currently worth about A$310 million based on the recent share price. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with other shareholders.
What can internal transactions in Corporate Travel Management tell us?
It is certainly positive to see the recent internal buying. We also trust the longer-term picture of insider trading. When combined with significant insider ownership, these factors suggest that Corporate Travel Management’s insiders are bullish and very likely believe the stock price is too low. Looks promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Corporate Travel Management.
If you’d rather check out another company – one with potentially better financials – then don’t miss this one Free of charge a list of interesting companies that have a HIGH return on equity and low debt.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory authority. We currently report open market transactions and private dispositions only with direct interests, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
