Insiders Rewarded With US$774k Addition To Investment As Cantaloupe Stock Hits US$719m

Cantaloupe, Inc. (NASDAQ:CTLP) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 21% resulting in a US$125m addition to the company’s market value. As a result, the stock they originally bought for US$2.26m is now worth US$3.04m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Cantaloupe

Cantaloupe Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Douglas Bergeron for US$2.1m worth of shares, at about US$7.41 per share. Even though the purchase was made at a significantly lower price than the recent price (US$9.84), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Cantaloupe insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Cantaloupe

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Cantaloupe insiders own 9.7% of the company, worth about US$70m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Cantaloupe Insider Transactions Indicate?

The fact that there have been no Cantaloupe insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Cantaloupe and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Cantaloupe, you should check out this free report on analyst forecasts for the company.

But note: Cantaloupe may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.