Jeffrey LeBlanc Bought 286% More Shares In Cactus Acquisition 1

Even if it's not a huge purchase, we think it was good to see that Jeffrey LeBlanc, the Director of Cactus Acquisition Corp. 1 Limited (NASDAQ:CCTS) recently shelled out US$50k to buy stock, at US$0.50 per share. Even though that isn't a massive buy, it did increase their holding by 286%, which is arguably a good sign.

View our latest analysis for Cactus Acquisition 1

The Last 12 Months Of Insider Transactions At Cactus Acquisition 1

Over the last year, we can see that the biggest insider sale was by the insider, Graham Chee, for US$135k worth of shares, at about US$0.50 per share. That means that even when the share price was below the current price of US$11.42, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 16% of Graham Chee's stake. Graham Chee was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 130.00k shares worth US$65k. But insiders sold 505.00k shares worth US$200k. Graham Chee sold a total of 505.00k shares over the year at an average price of US$0.40. 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!

I will like Cactus Acquisition 1 better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Cactus Acquisition 1 Boast High Insider Ownership?

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. Cactus Acquisition 1 insiders own about US$24m worth of shares (which is 42% of the company). 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 Cactus Acquisition 1 Tell Us?

The insider sales have outweighed the insider buying, at Cactus Acquisition 1, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Cactus Acquisition 1 is showing 6 warning signs in our investment analysis, and 3 of those are significant...

Of course Cactus Acquisition 1 may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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