Market cap

As the market capitalization of Credit Intelligence Limited (ASX:CI1) rose by A$1.3 million, insiders who bought in the last year may consider buying more

Credit Intelligence Limited (ASX:CI1) Insiders who bought stocks in the past 12 months were richly rewarded last week. The stock rose 11%, leading to an A$1.3 million increase in the company’s market value. As a result, the stock they originally bought for A$70,000 is now worth A$75,000.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

Check opportunities and risks within the AU business services industry.

Credit Intelligence Insider Transactions Over the Last Year

While no particular insider trades stood out, we can still review all of the trades.

The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

ASX: CI1 Insider Trading Volume October 25, 2022

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Does credit intelligence boast high insider ownership?

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. Credit Intelligence insiders hold approximately A$4.8 million worth of shares. This equals 38% of the business. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what does this Credit Intelligence insider data suggest?

The fact that there have been no Credit Intelligence insider trades recently certainly doesn’t bother us. However, our analysis of transactions over the past year is encouraging. Overall, we see nothing to suggest that Credit Intelligence insiders doubt the company, and they own stock. In addition to knowing insider trading going on, it pays to identify the risks that Credit Intelligence faces. Our analysis shows 2 Warning Signs for Credit Intelligence (1 makes us a little uncomfortable!) and we strongly recommend that you consult them before investing.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we help make it simple.

Find out if Credit Information is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.