Insider Buys Additional UK£3.6m In CMC Markets Stock
Those following along with CMC Markets Plc (LON:CMCX) will no doubt be intrigued by the recent purchase of shares by Peter Cruddas, Founder of the company, who spent a stonking UK£3.6m on stock at an average price of UK£6.57. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
CMC Markets Insider Transactions Over The Last Year
In fact, the recent purchase by Peter Cruddas was the biggest purchase of CMC Markets shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£6.54 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Happily, we note that in the last year insiders paid UK£4.9m for 762.31k shares. But insiders sold 400.00k shares worth UK£3.0m. In total, CMC Markets insiders bought more than they sold over the last year. 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 CMC Markets
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).
Insider Ownership Of CMC Markets
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. CMC Markets insiders own 65% of the company, currently worth about UK£1.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About CMC Markets Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CMC Markets insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for CMC Markets.
But note: CMC Markets may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.