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Whilst it may not be a huge deal, we thought it was good to see that the Cactus Acquisition Corp. 1 Limited (NASDAQ:CCTS) Director, Jeffrey LeBlanc, recently bought US$50k worth of stock, for US$0.50 per share. While that isn't the hugest buy, it actually boosted their shareholding by 286%, which is good to see.
View our latest analysis for Cactus Acquisition 1
The Last 12 Months Of Insider Transactions At Cactus Acquisition 1
In the last twelve months, the biggest single sale by an insider was when the insider, Graham Chee, sold US$135k worth of shares at a price of US$0.50 per share. That means that even when the share price was below the current price of US$11.42, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 16% of Graham Chee's holding. Graham Chee was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$65k for 130.00k shares. On the other hand they divested 505.00k shares, for US$200k. Graham Chee ditched 505.00k shares over the year. The average price per share was US$0.40. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. Cactus Acquisition 1 insiders own about US$24m worth of shares (which is 42% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Cactus Acquisition 1 Insiders?
The insider sales have outweighed the insider buying, at Cactus Acquisition 1, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cactus Acquisition 1. To that end, you should learn about the 6 warning signs we've spotted with Cactus Acquisition 1 (including 3 which are significant).