Insider Stock Buying Reaches US$3.51m On ECN Capital
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of ECN Capital Corp. (TSE:ECN), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for ECN Capital
The Last 12 Months Of Insider Transactions At ECN Capital
The CEO & Executive Director Steven Hudson made the biggest insider purchase in the last 12 months. That single transaction was for CA$610k worth of shares at a price of CA$2.44 each. We do like to see buying, but this purchase was made at well below the current price of CA$2.73. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While ECN Capital insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
ECN Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does ECN Capital Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.0% of ECN Capital shares, worth about CA$53m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At ECN Capital Tell Us?
It doesn't really mean much that no insider has traded ECN Capital shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in ECN Capital and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for ECN Capital you should be aware of, and 1 of them is a bit concerning.
Of course ECN Capital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
