Trade Alert: The Independent Director Of Entravision Communications Corporation (NYSE:EVC), Gilbert Vasquez, Has Just Spent US$122k Buying Shares
Investors who take an interest in Entravision Communications Corporation (NYSE:EVC) should definitely note that the Independent Director, Gilbert Vasquez, recently paid US$2.09 per share to buy US$122k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 15%.
Check out our latest analysis for Entravision Communications
Entravision Communications Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Gilbert Vasquez was not the only time they bought Entravision Communications shares this year. They previously made an even bigger purchase of US$307k worth of shares at a price of US$3.07 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.96). 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 is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Entravision Communications insiders were buying shares, but not selling. They paid about US$2.70 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Entravision Communications is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Entravision Communications insiders own 19% of the company, worth about US$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Entravision Communications Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Entravision Communications shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Entravision Communications.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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