Bullish Charles & Colvard, Ltd. (NASDAQ:CTHR) insiders filled their treasuries with US$1.7m worth of stock over last year
In the last year, multiple insiders have substantially increased their holdings of Charles & Colvard, Ltd. (NASDAQ:CTHR) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Charles & Colvard
Charles & Colvard Insider Transactions Over The Last Year
In fact, the recent purchase by Carlos Valadez was the biggest purchase of Charles & Colvard shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$1.17. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Charles & Colvard insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Charles & Colvard is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Charles & Colvard Have Bought Stock Recently
Over the last quarter, Charles & Colvard insiders have spent a meaningful amount on shares. We can see that insider Carlos Valadez paid US$1.6m for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Charles & Colvard Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Charles & Colvard insiders own about US$4.4m worth of shares (which is 12% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Charles & Colvard Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Charles & Colvard stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Charles & Colvard and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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, 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.
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