Insiders at Eos Energy Enterprises, Inc. (NASDAQ:EOSE) snagged a bargain: a US$140k profit on a US$731k buy
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 18% decline in the stock price. After taking the recent loss into consideration, the US$731k worth of stock they bought is now worth US$871k, indicating that their investment yielded a positive return.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Eos Energy Enterprises
The Last 12 Months Of Insider Transactions At Eos Energy Enterprises
In the last twelve months, the biggest single sale by an insider was when the insider, Bryant Riley, sold US$527k worth of shares at a price of US$13.81 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.40. So it is hard to draw any strong conclusion from it. Bryant Riley was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$731k for 362.90k shares. But insiders sold 38.23k shares worth US$527k. In total, Eos Energy Enterprises insiders bought more than they sold over the last year. Their average price was about US$2.01. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Eos Energy Enterprises is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Eos Energy Enterprises Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Eos Energy Enterprises. Not only was there no selling that we can see, but they collectively bought US$322k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 5.7% of Eos Energy Enterprises shares, worth about US$8.0m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Eos Energy Enterprises Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Eos Energy Enterprises insiders are reasonably well aligned, and optimistic for 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. Every company has risks, and we've spotted 3 warning signs for Eos Energy Enterprises (of which 2 are a bit concerning!) you should know about.
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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