S&P/ASX All Ordinaries Index (ASX: XAO) stock Cettire Ltd (ASX: CTT) has gained momentum recently and climbed 18% in the past month of trade.
Today, the luxury online retailer posted an announcement advising that its Founder and CEO, Dean Mintz, purchased additional shares in the company.
Whilst the announcement wasn't price-sensitive at all, insider transactions are often seen as key events.
Despite this, investors have sold Cettire shares on Wednesday and the stock is down more than 9% to $1.38 apiece at the time of writing.
Let's see what the company posted.
ASX All Ords stock insider buys
The CEO of the ASX All Ords stock acquired over 11.4 million shares, amounting to a $15.8 million investment. After the trade, his ownership in the company increased by approximately 33%.
Mintz's purchase comes at a critical time for Cettire after a mixed set of FY24 results.
On the one hand, gross revenue surged 81% year over year to $978 million. But net profits also fell 34%. Many factors, including increased customer acquisition costs, drove this.
Adding to the uncertainty, management warned of softer trading conditions in the global luxury sector that may impact near-term growth.
Nevertheless, the CEO upped his ownership stake to around one-third of the company – at the same time Cettire was one of the most heavily shorted ASX stocks on Monday. It had 9% of the float short, similar to the previous week.
Now Mintz is Cettire's largest shareholder and is keen to continue the company's revenue growth:
We are relentlessly focussed on driving profitable revenue growth, expanding our global footprint, remaining self-funding and executing Cettire's growth strategy. I believe we are well placed to deliver profitable growth in FY25 and beyond.
There is no saying what impact this could have on the ASX All Ords stock.
Brokers are bullish too
Analysts remain cautiously optimistic about the ASX All Ords stock's prospects. Bell Potter is bullish on Cettire shares, albeit with a reduced price target of $2 apiece.
But this still represents a significant potential upside of 45% from the current share price.
According to my colleague James, the broker acknowledges the uncertainties but also believes in the company's lean business model.
Improved demand conditions in 2025 could boost revenue and margins over the long term, Bell says.
We continue to see plenty of upside in revenue/earnings from 3Q25 onwards considering overall improving demand conditions and benefits in CTT's lean business model…
Bell Potter also fully recognises the risks and, consequently, rates it a 'speculative' buy.
Meanwhile, the ASX All Ords stock is rated as a buy from consensus, according to CommSec.
Foolish takeaway
Cettire's CEO has bought up a number of shares, bringing his ownership stake in the company to 33%.
In the past 12 months, the ASX All Ords stock is down more than 52% in the red, providing a 62% loss against the broader market. It is down 47% this year alone.
