How Many Cementir Holding S.p.A. (BIT:CEM) Shares Did Insiders Buy, In The Last Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Cementir Holding S.p.A. (BIT:CEM).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Cementir Holding
The Last 12 Months Of Insider Transactions At Cementir Holding
Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Francesco Caltagirone for €7.7m worth of shares, at about €6.04 per share. That implies that an insider found the current price of €6.35 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Cementir Holding share holders is that an insider was buying at near the current price. Francesco Caltagirone was the only individual insider to buy over the year. Notably Francesco Caltagirone was also the biggest seller, having sold €7.7m worth of shares.
Francesco Caltagirone bought a total of 1.4m shares over the year at an average price of €5.89. You can see a visual depiction of insider transactions (by 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!
Cementir Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.8% of Cementir Holding shares, worth about €58m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Cementir Holding Insider Transactions Indicate?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Cementir Holding and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Cementir Holding, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
