Trade Alert: The Independent Non-Executive Director Of Capital & Counties Properties PLC (LON:CAPC), Jonathan Lane, Has Just Spent UK£142k Buying 266% More Shares

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Investors who take an interest in Capital & Counties Properties PLC (LON:CAPC) should definitely note that the Independent Non-Executive Director, Jonathan Lane, recently paid UK£1.30 per share to buy UK£142k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 266%.

View our latest analysis for Capital & Counties Properties

Capital & Counties Properties Insider Transactions Over The Last Year

Notably, that recent purchase by Jonathan Lane is the biggest insider purchase of Capital & Counties Properties shares that we've seen in the last year. That means that even when the share price was higher than UK£1.29 (the recent price), an insider wanted to purchase shares. 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.

Capital & Counties Properties insiders may have bought shares in the last year, but they didn't sell any. 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
LSE:CAPC Insider Trading Volume August 17th 2020

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 Capital & Counties Properties Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£2.8m worth of Capital & Counties Properties stock, about 0.3% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Do The Capital & Counties Properties Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Capital & Counties Properties stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Capital & Counties Properties (1 is a bit unpleasant!) that we believe deserve your full attention.