Insider Spends US$75k Buying More Shares In CENTR Brands \

Even if it's not a huge purchase, we think it was good to see that Arjan Chima, the Founder of CENTR Brands Corp. (CSE:CNTR) recently shelled out CA$75k to buy stock, at CA$0.27 per share. However, it only increased their shares held by 8.0%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for CENTR Brands

CENTR Brands Insider Transactions Over The Last Year

The insider Paul Meehan made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.7m worth of shares at a price of CA$0.30 each. That means that even when the share price was higher than CA$0.28 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Happily, we note that in the last year insiders paid CA$4.5m for 13.02m shares. But they sold 475.00k shares for CA$188k. In the last twelve months there was more buying than selling by CENTR Brands insiders. The average buy price was around CA$0.35. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does CENTR Brands Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. CENTR Brands insiders own 45% of the company, currently worth about CA$14m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The CENTR Brands Insider Transactions Indicate?

It is good to see recent purchasing. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about CENTR Brands. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 6 warning signs for CENTR Brands you should be aware of, and 2 of these are a bit unpleasant.

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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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.