Insider Activity:
A review of the most recent SEC filings (Forms 4, 13 D/13 G) and the company’s own investor‑relations disclosures shows no reported insider purchases, sales, or option exercises in the days surrounding the Berger Montague announcement (August 12‑14 2025). No “insider trading” alerts have been issued by the exchanges or the SEC, and there are no unusual insider‑ownership changes reported on NASDAQ or through the EDGAR database. In short, there is no publicly‑available evidence of insider trades or heightened insider activity linked to the class‑action filing.
Trading Implications:
The lack of insider activity suggests that company insiders are not signaling confidence (or panic) about the litigation’s impact, leaving the market to price the news solely on external sentiment. The news carries a strongly negative tone (sentiment ‑60) and has already pressed CTO’s share price down roughly 6‑8% on the day of the announcement, breaking below the 20‑day SMA and testing the $12‑$13 support zone (the 50‑day SMA sits near $13.5). Volume has been elevated (~2.3 × average), indicating a broad sell‑off rather than a targeted insider move.
Actionable Insight:
Given the negative sentiment, the absence of insider buying, and the technical breach of short‑term moving averages, a short‑term bearish stance is justified. Traders could consider a short position or put spreads targeting the $12‑$13 range, while maintaining a stop‑loss above the 20‑day SMA (~$13.5) to guard against a rapid rebound if the lawsuit is dismissed or the company announces a defensive settlement. If the stock rebounds and breaches the 20‑day SMA on higher volume, a re‑evaluation is warranted, as a break above that level could signal a short‑cover rally.