CENTR Brands Corp. (CSE:CNTR) shareholders (or potential shareholders) will be happy to see that insider David Lyall recently bought a whopping CA$1.0m worth of stock, at a price of CA$1.50. While that only increased their holding size by 8.3%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At CENTR Brands
In fact, the recent purchase by David Lyall was the biggest purchase of CENTR Brands shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.42). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that David Lyall was also the biggest seller.
Over the last year, we can see that insiders have bought 1.75m shares worth CA$1.7m. On the other hand they divested 80.00k shares, for CA$56k. In the last twelve months there was more buying than selling by CENTR Brands insiders. The average buy price was around CA$0.99. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
CENTR Brands is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of CENTR Brands
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. We usually like to see fairly high levels of insider ownership. CENTR Brands insiders own 41% of the company, currently worth about CA$48m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At CENTR Brands Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CENTR Brands. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for CENTR Brands (of which 2 are potentially serious!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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