Have Insiders Sold Cryosite Shares Recently?

Some Cryosite Limited (ASX:CTE) shareholders may be a little concerned to see that insider Andrew Kroger recently sold a substantial AU$7.3m worth of stock at a price of AU$1.05 per share. That diminished their holding by a very significant 55%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Cryosite

The Last 12 Months Of Insider Transactions At Cryosite

In fact, the recent sale by Andrew Kroger was the biggest sale of Cryosite shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$1.19, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 55% of Andrew Kroger's holding.

Over the last year, we can see that insiders have bought 5.00m shares worth AU$3.5m. On the other hand they divested 8.00m shares, for AU$8.2m. Andrew Kroger divested 8.00m shares over the last 12 months at an average price of AU$1.02. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Cryosite insiders own 56% of the company, currently worth about AU$32m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Cryosite Tell Us?

Unfortunately, there has been more insider selling of Cryosite stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Cryosite is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Every company has risks, and we've spotted 2 warning signs for Cryosite you should know about.

Of course Cryosite 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com