Chen Huoyuan, a significant shareholder of Cheetah Net Supply Chain Service Inc. (OTC:CTNT), has recently sold a substantial amount of company stock, totaling over $1.28 million. The transactions took place over several dates, with share prices ranging from as low as $1.26 to as high as $4.32.
The sales began on April 19, 2024, with Chen Huoyuan offloading 100 shares at $1.46 each. Subsequent sales occurred on May 7, where 1,000 shares were sold at $1.76 per share, and on May 13, an additional 400 shares were disposed of at $1.42 each. The selling continued on May 14, with a significant transaction involving 8,500 shares at a weighted average price of $4.32. It's important to note that this particular sale's price varied between $3.6 to $4.9, as detailed in the footnotes of the report.
The largest transaction took place on May 21, 2024, when Chen Huoyuan sold 990,000 shares at a weighted average price of $1.26. This sale's price range was quite broad, with shares sold at prices from $0.95 to $4.55, as per the footnotes provided in the filing.
Following these transactions, the reporting indicated that Chen Huoyuan's ownership in the company has been reduced to zero. These sales were conducted indirectly through Rapid Proceed Limited, a company entirely owned by Chen Huoyuan.
Investors and followers of Cheetah Net Supply Chain Service Inc. will likely keep a close eye on such significant market activity, as insider transactions can often provide valuable insights into a company's financial health and future prospects.
In other recent news, Cheetah Net Supply Chain Service Inc. has priced its follow-on public offering of 13,210,000 shares of Class A common stock at $0.62 each, expecting to raise $8,190,200 in gross proceeds before accounting for placement agent fees and other related expenses. This offering is set to close in the near future, with AC Sunshine Securities LLC acting as the sole placement agent. The company plans to use the net proceeds to increase working capital and further develop its warehousing and logistics services, as part of its strategic expansion initiatives. It should be noted that these are recent developments within the company. The company's profits are primarily generated from the margins between the buying and selling prices of luxury automobiles from the U.S. market to customers in the U.S. and the People's Republic of China. This data is based on a press release statement from Cheetah Net Supply Chain Service Inc.
InvestingPro Insights
Amidst the notable insider transactions at Cheetah Net Supply Chain Service Inc. (OTC:CTNT), current and potential investors may find the following InvestingPro Insights particularly illuminating. The company's market capitalization stands at a modest $17.5 million, reflecting its position in the market. Notably, the stock has experienced a precipitous decline, with a one-year price total return of -92.17%, indicating a significant drop in investor confidence over the past year.
Adding to concerns, analysts have forecasted a sales decline in the current year, and the company has been grappling with weak gross profit margins, which currently stand at 10.57%. This could be a contributing factor to the decisions made by significant shareholders like Chen Huoyuan. Moreover, CTNT's stock has been trading with high volatility, which, combined with the recent substantial sales by an insider, may suggest a cautious approach for those considering an investment.
For individuals seeking more in-depth analysis and additional InvestingPro Tips, including insights into the company's debt levels, profitability, and valuation multiples, InvestingPro offers a comprehensive set of tips. As of now, there are 16 additional tips available on InvestingPro for CTNT, which can be accessed by interested parties. To further enhance your investment research, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to a wealth of financial data and expert analysis.
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