We wouldn't blame Catapult Group International Ltd (ASX:CAT) shareholders if they were a little worried about the fact that Shaun Holthouse, the Co-Founder & Non-Executive Director recently netted about AU$2.2m selling shares at an average price of AU$3.92. However, that sale only accounted for 3.7% of their holding, so arguably it doesn't say much about their conviction.
Check out our latest analysis for Catapult Group International
In fact, the recent sale by Co-Founder & Non-Executive Director Shaun Holthouse was not their only sale of Catapult Group International shares this year. They previously made an even bigger sale of -AU$4.2m worth of shares at a price of AU$2.12 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$3.67. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 12% of Shaun Holthouse's holding.
In the last year Catapult Group International 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 Catapult Group International 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.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Catapult Group International insiders own 16% of the company, worth about AU$157m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
An insider sold Catapult Group International shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Catapult Group International. You'd be interested to know, that we found 2 warning signs for Catapult Group International and we suggest you have a look.
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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