Advanced Emissions Solutions Insiders Added US$7.97m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Advanced Emissions Solutions, Inc. (NASDAQ:ADES) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Advanced Emissions Solutions
The Last 12 Months Of Insider Transactions At Advanced Emissions Solutions
The Independent Director Julian McIntyre made the biggest insider purchase in the last 12 months. That single transaction was for US$4.8m worth of shares at a price of US$4.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.81). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 2.06m shares for US$8.0m. But insiders sold 154.29k shares worth US$617k. In the last twelve months there was more buying than selling by Advanced Emissions Solutions insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Advanced Emissions Solutions Insiders Bought Stock Recently
Over the last quarter, Advanced Emissions Solutions insiders have spent a meaningful amount on shares. Chief Technology Officer Joseph Wong spent US$415k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Does Advanced Emissions Solutions Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Advanced Emissions Solutions insiders own 20% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Advanced Emissions Solutions Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Advanced Emissions Solutions we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Advanced Emissions Solutions you should be aware of, and 2 of them are a bit concerning.
But note: Advanced Emissions Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
