Richard Wallman Bought 27% More Shares In CECO Environmental
CECO Environmental Corp. (NASDAQ:CECO) shareholders (or potential shareholders) will be happy to see that the Independent Director, Richard Wallman, recently bought a whopping US$989k worth of stock, at a price of US$19.78. Not only is that a big swing, but it increased their holding size by 27%, which is definitely great to see.
View our latest analysis for CECO Environmental
The Last 12 Months Of Insider Transactions At CECO Environmental
Notably, that recent purchase by Richard Wallman is the biggest insider purchase of CECO Environmental shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$22.09), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$1.4m for 77.50k shares. But they sold 26.38k shares for US$477k. Overall, CECO Environmental insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of CECO Environmental
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CECO Environmental insiders own about US$51m worth of shares. That equates to 6.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At CECO Environmental Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CECO Environmental insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for CECO Environmental you should know about.
But note: CECO Environmental 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.
