Those following along with COG Financial Services Limited (ASX:COG) will no doubt be intrigued by the recent purchase of shares by Cameron McCullagh, Executive Director and Head of Finance Broking & Aggregation of the company, who spent a stonking AU$4.1m on stock at an average price of AU$1.35. 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 9.1%.

See our latest analysis for COG Financial Services

The Last 12 Months Of Insider Transactions At COG Financial Services

Notably, that recent purchase by Cameron McCullagh is the biggest insider purchase of COG Financial Services shares that we've seen in the last year. That means that even when the share price was higher than AU$1.34 (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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Cameron McCullagh was the only individual insider to buy during the last year. Notably Cameron McCullagh was also the biggest seller.

Cameron McCullagh bought 4.91m shares over the last 12 months at an average price of AU$1.28. 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

COG Financial Services is not the only stock that insiders are buying. For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that COG Financial Services insiders own 21% of the company, worth about AU$53m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.



So What Does This Data Suggest About COG Financial Services Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in COG Financial Services shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing COG Financial Services. When we did our research, we found 3 warning signs for COG Financial Services (1 is potentially serious!) that we believe deserve your full attention.

But note: COG Financial Services may not be the best stock to buy. So take a peek at this freelist 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.

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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.