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In the last year, multiple insiders have substantially increased their holdings of Clean Seas Seafood Limited (ASX:CSS) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Clean Seas Seafood
Clean Seas Seafood Insider Transactions Over The Last Year
The insider Anthony Hall made the biggest insider purchase in the last 12 months. That single transaction was for AU$4.3m worth of shares at a price of AU$0.27 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.18). 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.
While Clean Seas Seafood insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Clean Seas Seafood Insiders Buying Or Selling?
There was some insider buying at Clean Seas Seafood over the last quarter. insider Gary Higgins purchased AU$13k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Does Clean Seas Seafood Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Clean Seas Seafood insiders own about AU$9.1m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Clean Seas Seafood Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Clean Seas Seafood and their transactions don't cause us concern. 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 4 warning signs for Clean Seas Seafood you should be aware of.