Bullish insiders bet AU$1.5m on City Chic Collective Limited (ASX:CCX)

Over the last year, a good number of insiders have significantly increased their holdings in City Chic Collective Limited (ASX:CCX). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for City Chic Collective

The Last 12 Months Of Insider Transactions At City Chic Collective

Over the last year, we can see that the biggest insider purchase was by insider Brett Blundy for AU$1.0m worth of shares, at about AU$0.44 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.46. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 City Chic Collective share holders is that insiders were buying at near the current price.

City Chic Collective insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.54 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

City Chic Collective 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.

Insiders At City Chic Collective Have Bought Stock Recently

It's good to see that City Chic Collective insiders have made notable investments in the company's shares. Overall, four insiders shelled out AU$1.1m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that City Chic Collective insiders own about AU$11m worth of shares (which is 10.0% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At City Chic Collective Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in City Chic Collective shares, given these transactions (along with notable insider ownership of the company). 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. For example, City Chic Collective has 3 warning signs (and 2 which can't be ignored) we think you should know about.

But note: City Chic Collective 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here