Yahoo Finance Insider Stock Buying Reaches AU$3.46m On Cryosite
Multiple insiders secured a larger position in Cryosite Limited (ASX:CTE) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Cryosite
The Last 12 Months Of Insider Transactions At Cryosite
Over the last year, we can see that the biggest insider purchase was by Non Executive Director Andrew Kroger for AU$900k worth of shares, at about AU$0.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 5.00m shares for AU$3.5m. But insiders sold 1.00m shares worth AU$830k. In total, Cryosite insiders bought more than they sold over the last year. Their average price was about AU$0.69. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Cryosite Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Cryosite, over the last three months. In fact, two insiders bought AU$1.7m worth of shares. But Non Executive Director Andrew Kroger sold shares worth AU$830k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership Of Cryosite
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Cryosite insiders own 56% of the company, currently worth about AU$30m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Cryosite Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cryosite. Looks promising! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Cryosite has 1 warning sign we think you should be aware of.
But note: Cryosite may not be the best stock to buy. So take a peek at this free list 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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
