Insider Buying: The Charles & Colvard, Ltd. (NASDAQ:CTHR) Independent Director Just Bought 5.1% More Shares

Even if it's not a huge purchase, we think it was good to see that Ollin Sykes, the Independent Director of Charles & Colvard, Ltd. (NASDAQ:CTHR) recently shelled out US$88k to buy stock, at US$1.02 per share. However, it only increased their shares held by 5.1%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Charles & Colvard

The Last 12 Months Of Insider Transactions At Charles & Colvard

In fact, the recent purchase by Independent Director Ollin Sykes was not their only acquisition of Charles & Colvard shares this year. Earlier in the year, they paid US$0.79 per share in a US$136k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.12. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Charles & Colvard insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Charles & Colvard is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Charles & Colvard

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. From our data, it seems that Charles & Colvard insiders own 12% of the company, worth about US$3.9m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Charles & Colvard Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Charles & Colvard insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charles & Colvard. Every company has risks, and we've spotted 2 warning signs for Charles & Colvard 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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