Insider Buyers At Eguana Technologies Recover Some Losses, But Still Down CA$97k
Insiders who purchased CA$284k worth of Eguana Technologies Inc. (CVE:EGT) shares over the past year recouped some of their losses after price gained 19% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$97k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Eguana Technologies
Eguana Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board George Powlick bought CA$94k worth of shares at a price of CA$0.31 per share. That means that even when the share price was higher than CA$0.16 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. George Powlick was the only individual insider to buy during the last year.
George Powlick bought 1.17m shares over the last 12 months at an average price of CA$0.24. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Eguana Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Based on our data, Eguana Technologies insiders have about 2.7% of the stock, worth approximately CA$1.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
So What Do The Eguana Technologies Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. 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 Eguana Technologies insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eguana Technologies. For instance, we've identified 5 warning signs for Eguana Technologies (1 is a bit concerning) you should be aware of.
But note: Eguana Technologies 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, 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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