Several Insiders Invested In Cyclo Therapeutics Flagging Positive News
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 Cyclo Therapeutics, Inc. (NASDAQ:CYTH), it sends a favourable message to the company's shareholders.
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.
See our latest analysis for Cyclo Therapeutics
The Last 12 Months Of Insider Transactions At Cyclo Therapeutics
The CEO & Director N. Fine made the biggest insider purchase in the last 12 months. That single transaction was for US$213k worth of shares at a price of US$0.71 each. Even though the purchase was made at a significantly lower price than the recent price (US$0.96), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Cyclo Therapeutics insiders bought shares during the last year, they didn't sell. 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 growing companies that insiders are buying.
Does Cyclo Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.7% of Cyclo Therapeutics shares, worth about US$1.8m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Cyclo Therapeutics Insiders?
The fact that there have been no Cyclo Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cyclo Therapeutics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cyclo Therapeutics. Every company has risks, and we've spotted 5 warning signs for Cyclo Therapeutics (of which 3 shouldn't be ignored!) you should know about.
But note: Cyclo Therapeutics 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.
