Trade Alert: The Executive Chairman Of CyanConnode Holdings plc (LON:CYAN), John Cronin, Has Just Spent UK£67k Buying 39% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the CyanConnode Holdings plc (LON:CYAN) Executive Chairman, John Cronin, recently bought UK£67k worth of stock, for UK£0.046 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 39%.

View our latest analysis for CyanConnode Holdings

The Last 12 Months Of Insider Transactions At CyanConnode Holdings

The Non-Executive Director William Johns-Powell made the biggest insider purchase in the last 12 months. That single transaction was for UK£77k worth of shares at a price of UK£0.024 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.047. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid UK£218k for 6.09m shares. But they sold 3.51m shares for UK£93k. In total, CyanConnode Holdings insiders bought more than they sold over the last year. Their average price was about UK£0.036. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

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Insider Ownership of CyanConnode Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that CyanConnode Holdings insiders own 14% of the company, worth about UK£1.2m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The CyanConnode Holdings Insider Transactions Indicate?

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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on CyanConnode Holdings stock. 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. Case in point: We've spotted 4 warning signs for CyanConnode Holdings you should be aware of, and 2 of these are concerning.

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. 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.
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