Insider Buying: Cettire Founder Bought AU$250k Of Shares

Potential Cettire Limited (ASX:CTT) shareholders may wish to note that the Founder, Dean Mintz, recently bought AU$250k worth of stock, paying AU$0.35 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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Cettire Insider Transactions Over The Last Year

Notably, that recent purchase by Dean Mintz is the biggest insider purchase of Cettire shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.45. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Cettire insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.39 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

Check out our latest analysis for Cettire

Cettire is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 33% of Cettire shares, worth about AU$56m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Cettire Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Cettire insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cettire. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Cettire.

But note: Cettire 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.