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How Many Insiders Sold Cutera, Inc. (NASDAQ:CUTR) Shares?

Ben Rossbaum

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Cutera, Inc. (NASDAQ:CUTR).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

View our latest analysis for Cutera

The Last 12 Months Of Insider Transactions At Cutera

Over the last year, we can see that the biggest insider sale was by David Gollnick for US$713k worth of shares, at about US$41.02 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$15.57. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 11.25k shares worth US$404k. But they sold 29.41k for US$1.2m. In total, Cutera insiders sold more than they bought over the last year. The sellers received a price of around US$40.99, on average. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$15.57). You can see a visual depiction of insider transactions over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:CUTR Insider Trading December 26th 18
NasdaqGS:CUTR Insider Trading December 26th 18

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Cutera Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Cutera insiders own 1.6% of the company, worth about US$3.1m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Cutera Tell Us?

It doesn’t really mean much that no insider has traded Cutera shares in the last quarter. The insider transactions at Cutera are not inspiring us to buy. And we’re not picking up on high enough insider ownership to give us any comfort. Of course, the future is what matters most. So if you are interested in Cutera, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.