With stock up 15%, Insiders of Cutera, Inc. (NASDAQ:CUTR) must be wishing they had bought more last year
Insiders who bought Cutera, Inc. (NASDAQ:CUTR) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$125m as a result of the stock's 15% gain over the same period. As a result, the stock they originally bought for US$217k is now worth US$266k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Cutera
Cutera Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director David Mowry for US$100k worth of shares, at about US$40.81 per share. We do like to see buying, but this purchase was made at well below the current price of US$50.03. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Cutera 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!
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.
Insider Ownership Of Cutera
Many investors like to check how much of a company is owned by 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. Insiders own 2.6% of Cutera shares, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller 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. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Cutera and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Cutera that deserve your attention before buying any shares.
But note: Cutera 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, 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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