New Zealand markets closed
  • NZX 50

    11,684.81
    -129.53 (-1.10%)
     
  • NZD/USD

    0.6227
    -0.0031 (-0.50%)
     
  • NZD/EUR

    0.6171
    -0.0028 (-0.45%)
     
  • ALL ORDS

    7,358.70
    +1.00 (+0.01%)
     
  • ASX 200

    7,114.50
    +1.70 (+0.02%)
     
  • OIL

    90.06
    -0.44 (-0.49%)
     
  • GOLD

    1,767.00
    -4.20 (-0.24%)
     
  • NASDAQ

    13,505.99
    +35.13 (+0.26%)
     
  • FTSE

    7,543.90
    +2.05 (+0.03%)
     
  • Dow Jones

    33,999.04
    +18.72 (+0.06%)
     
  • DAX

    13,635.23
    -62.18 (-0.45%)
     
  • Hang Seng

    19,778.67
    +14.76 (+0.07%)
     
  • NIKKEI 225

    28,930.33
    -11.81 (-0.04%)
     
  • NZD/JPY

    85.1030
    +0.1220 (+0.14%)
     

Should You Take Comfort From Insider Transactions At Creatd Inc. (NASDAQ:CRTD)?

·4-min read

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Creatd Inc. (NASDAQ:CRTD).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Creatd

The Last 12 Months Of Insider Transactions At Creatd

In the last twelve months, the biggest single purchase by an insider was when Independent Director Mark Patterson bought US$141k worth of shares at a price of US$3.55 per share. We do like to see buying, but this purchase was made at well below the current price of US$6.20. 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.

In the last twelve months Creatd insiders were buying shares, but not selling. Their average price was about US$4.52. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Creatd Insiders Bought Stock Recently

It's good to see that Creatd insiders have made notable investments in the company's shares. We can see that insider Arthur Rosen paid US$87k for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership of Creatd

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. Creatd insiders own 47% of the company, currently worth about US$25m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Creatd Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Creatd insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Creatd. Be aware that Creatd is showing 5 warning signs in our investment analysis, and 2 of those are a bit concerning...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

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

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting