Non-Executive Chairman of Cryosite Mark Kerr Buys 4.3% More Shares

Potential Cryosite Limited (ASX:CTE) shareholders may wish to note that the Non-Executive Chairman, Mark Kerr, recently bought AU$185k worth of stock, paying AU$0.80 for each share. Although the purchase only increased their holding by 4.3%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At Cryosite

Over the last year, we can see that the biggest insider sale was by the insider, Andrew Kroger, for AU$7.3m worth of shares, at about AU$1.05 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.80. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid AU$4.8m for 5.23m shares. On the other hand they divested 8.15m shares, for AU$8.3m. All up, insiders sold more shares in Cryosite than they bought, over the last year. The average sell price was around AU$1.02. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (AU$0.80), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cryosite insiders own about AU$24m worth of shares (which is 61% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Cryosite Tell Us?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that Cryosite insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Cryosite.

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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.