Investors considering putting their hard-earned money into a company ought to consider a number of key factors before investing. Everything from fundamental analysis to technical analysis, growth prospects, new projects under development, and insider buying or selling play a role in helping investors gauge where the stock price is headed.
Insider selling can be a signal to the market that management believes the stock is overvalued and it is time to sell; other times it is merely a matter of timing in which stock-based compensation vests and management decides to utilize the stock options which were granted some time ago.
Regardless, it is always good to keep an eye on investor selling – if there is a pattern there, it is something to continue watching. Last week, a CRH Corp. (TSX:CRH) director sold 30,000 shares of the company, in a sale which saw him receive more than $170,000 from the transaction.
With CRH Corp. currently in a growth phase, acquiring portions of other businesses to expand its reach to physicians delivering primarily products and services intended to treat gastrointestinal diseases, the company has taken on substantial amounts of debt and has been forced to roll debt over a number of times in recent quarters or extend its credit facilities to meet its growth needs.
In the company’s most recent debt refinancing efforts, CRH Corp. has increased its credit facility to $100 million U.S. from $55 million U.S., allowing the company to repay loans which have sat at 12% interest with new debt costing approximately 3.5% per year moving forward. The debt has a maturity date of 2020.
Invest wisely, my friends.
