Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Cyclo Therapeutics Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Cyclo Therapeutics, Inc. (NASDAQ:CYTH), that sends out a positive 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, we do think it is perfectly logical to keep tabs on what insiders are doing.
View 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. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.42. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Cyclo Therapeutics insiders may have bought shares in the last year, but they didn't sell any. 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!
Cyclo Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Cyclo Therapeutics 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.0% of Cyclo Therapeutics shares, worth about US$3.3m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Cyclo Therapeutics Insiders?
It doesn't really mean much that no insider has traded Cyclo Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cyclo Therapeutics 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. Be aware that Cyclo Therapeutics is showing 6 warning signs in our investment analysis, and 2 of those don't sit too well with us...
Of course Cyclo Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.
