In the last year, multiple insiders have substantially increased their holdings of Caledonia Investments Plc (LON:CLDN) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

Check out our latest analysis for Caledonia Investments

Caledonia Investments Insider Transactions Over The Last Year

The Non-Executive Director William Wyatt made the biggest insider purchase in the last 12 months. That single transaction was for UK£590k worth of shares at a price of UK£34.76 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£32.95). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid UK£689k for 19.82k shares. But they sold 4.66k shares for UK£161k. In total, Caledonia Investments insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

Caledonia Investments is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

Caledonia Investments Insiders Bought Stock Recently

It's good to see that Caledonia Investments insiders have made notable investments in the company's shares. Overall, two insiders shelled out UK£689k for shares in the company -- and none sold. That shows some optimism about the company's future.



Does Caledonia Investments Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.6% of Caledonia Investments shares, worth about UK£65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Caledonia Investments Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Caledonia Investments insiders are well aligned, and that they may think the share price is too low. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

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.