Great news for Citi Trends, Inc. (NASDAQ:CTRN): Insiders acquired stock in large numbers last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Citi Trends, Inc. (NASDAQ:CTRN), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Citi Trends
Citi Trends Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Merchandising Officer, Lisa Powell, for US$221k worth of shares, at about US$78.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$19.44. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 11.35k shares worth US$437k. On the other hand they divested 8.01k shares, for US$435k. Overall, Citi Trends insiders were net buyers during the last year. They paid about US$38.47 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Citi Trends is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Citi Trends Have Bought Stock Recently
Over the last quarter, Citi Trends insiders have spent a meaningful amount on shares. In total, insiders bought US$129k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership Of Citi Trends
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.3% of Citi Trends shares, worth about US$6.8m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Citi Trends Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. 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 Citi Trends stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Citi Trends (including 2 which can't be ignored).
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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