Why the CSR share price is up on a $66 million asset sale

The CSR Limited (ASX: CSR) share price has climbed marginally higher this morning after the company announced the sale of its Ingleburn industrial property for $66 million.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSR Limited (ASX: CSR) share price has climbed marginally higher this morning after the company announced the sale of its Ingleburn industrial property for $66 million.

What did CSR announce?

CSR confirmed the sale of the industrial property in Ingleburn, NSW for $66 million which was retained by CSR following the sale of the Viridian Glass business on 31 January 2019.

CSR had previously advised a likely value for the site in excess of $60 million.

The Ingleburn property transaction together with the sale of the Viridian Glass business will be included as a significant item in the company's full-year accounts for the year ended 31 March 2019, which are to be announced on 8 May 2019.

What's been happening for CSR?

The CSR share price is currently sitting around the $3.32 per share mark, which is up nearly 20% so far this year.

However, the company's share price steadily declined in the second half of 2018 and the company still has some catching up to do given it was valued as high as $5.90 in May 2018.

The company is relatively cheap with a P/E multiple of 9x earnings and offers a more than handy 8% dividend yield for investors.

The thing that worries me a little bit about CSR is the significant insider trades it has seen in the last 6-18 months, particularly the $1.3 million worth of shares sold by CEO and Managing Director Alan Sindel when the shares were at a $5.24 valuation.

While the market has since corrected, I'd be keeping an eye on any big insider moves at the current price to try and gauge where management think the real value of CSR's share price sits.

For value investors, I'd prefer to look at the likes of Rio Tinto Ltd (ASX: RIO) or National Australia Bank Ltd (ASX: NAB) given the potential for growth and both currently yielding a handy income for their investors.

For those looking more for growth in 2019, I think it's worth checking out this top-rated growth stock in a booming $22 billion industry that could see its share price soar later this year.

Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »