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The recent price decline of 10.0% in City Chic Collective Limited's (ASX:CCX) stock may have disappointed insiders who bought AU$1.37m worth of shares at an average price of AU$0.24 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$569.9k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
City Chic Collective Insider Transactions Over The Last Year
The insider Brett Blundy made the biggest insider purchase in the last 12 months. That single transaction was for AU$926k worth of shares at a price of AU$0.28 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.099). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months City Chic Collective insiders were buying shares, but not selling. They paid about AU$0.24 on average. 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. 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 City Chic Collective
City Chic Collective is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
City Chic Collective Insiders Bought Stock Recently
We saw some City Chic Collective insider buying shares in the last three months. Independent Non-Executive Chairman Michael Graham Kay shelled out AU$60k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.