Careteq Reaches AU$9.1m Market Cap Benefiting Insider Stock Buying
Careteq Limited (ASX:CTQ) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a AU$1.4m addition to the company’s market value. Put another way, the original AU$96.6k acquisition is now worth AU$251.1k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Careteq Insider Transactions Over The Last Year
The insider Chunyan Niu made the biggest insider purchase in the last 12 months. That single transaction was for AU$97k worth of shares at a price of AU$0.005 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.013), 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.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Careteq
Careteq 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.
Insiders At Careteq Have Sold Stock Recently
The last three months saw some Careteq insider selling. insider Antanas Guoga divested only AU$23k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
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. Insiders own 38% of Careteq shares, worth about AU$3.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Careteq Tell Us?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Careteq insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Careteq. You'd be interested to know, that we found 2 warning signs for Careteq and we suggest you have a look.
Of course Careteq 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.