Eckoh Gains 14%, Insider Trades Reap Benefit \
Eckoh plc (LON:ECK) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a UK£14m rise in the company's market capitalisation. Put another way, the original UK£44k acquisition is now worth UK£49k.
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.
Check out our latest analysis for Eckoh
Eckoh Insider Transactions Over The Last Year
The Independent Non-Executive Director David Coghlan made the biggest insider purchase in the last 12 months. That single transaction was for UK£44k worth of shares at a price of UK£0.35 each. That means that an insider was happy to buy shares at around the current price of UK£0.39. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Eckoh insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was David Coghlan.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Eckoh is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Eckoh insiders own about UK£4.5m worth of shares (which is 4.0% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Eckoh Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Eckoh insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eckoh. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Eckoh.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.
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