Selling Cheetah Net Supply Chain Service Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Cheetah Net Supply Chain Service Inc.'s (NASDAQ:CTNT) value has fallen 30% in the last week, but insiders who sold US$12m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.78 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Cheetah Net Supply Chain Service

Cheetah Net Supply Chain Service Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Xiao Yan, for US$4.4m worth of shares, at about US$2.91 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$0.30. So it may not tell us anything about how insiders feel about the current share price.

In the last year Cheetah Net Supply Chain Service insiders didn't buy any company stock. 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!

I will like Cheetah Net Supply Chain Service 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.

Insiders At Cheetah Net Supply Chain Service Have Sold Stock Recently

The last quarter saw substantial insider selling of Cheetah Net Supply Chain Service shares. Specifically, insiders ditched US$12m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Cheetah Net Supply Chain Service Boast High Insider Ownership?

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. Cheetah Net Supply Chain Service insiders own about US$3.3m worth of shares. That equates to 29% of the company. 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 Does This Data Suggest About Cheetah Net Supply Chain Service Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of 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. For instance, we've identified 3 warning signs for Cheetah Net Supply Chain Service (1 is concerning) you should be aware of.

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 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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