Quite a few insiders have dramatically grown their holdings in Citi Trends, Inc. (NASDAQ:CTRN) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Citi Trends

The Last 12 Months Of Insider Transactions At Citi Trends

The CEO & Director Kenneth Seipel made the biggest insider purchase in the last 12 months. That single transaction was for US$4.1m worth of shares at a price of US$19.06 each. Even though the purchase was made at a significantly lower price than the recent price (US$26.29), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 246.66k shares worth US$4.5m. But insiders sold 262.00 shares worth US$7.0k. In the last twelve months there was more buying than selling by Citi Trends insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Citi Trends is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Citi Trends Insiders Buying Or Selling?

The last three months saw some Citi Trends insider selling. Vice President of Human Resources Katrina George only netted US$7.0k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of Citi Trends shares, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Citi Trends Insiders?

While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Citi Trends and their transactions don't cause us concern. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Citi Trends.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.