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Emanuel Gerard Is The Independent Chairman of the Board of Environmental Waste International Inc. (CVE:EWS) And They Just Picked Up 10% More Shares

·3-min read

Whilst it may not be a huge deal, we thought it was good to see that the Environmental Waste International Inc. (CVE:EWS) Independent Chairman of the Board, Emanuel Gerard, recently bought CA$76k worth of stock, for CA$0.10 per share. That purchase might not be huge but it did increase their holding by 10%.

See our latest analysis for Environmental Waste International

The Last 12 Months Of Insider Transactions At Environmental Waste International

The CEO, President W. H. MacBean made the biggest insider purchase in the last 12 months. That single transaction was for CA$163k worth of shares at a price of CA$0.24 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.075). 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. 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 Environmental Waste International insiders were buying shares, but not selling. Their average price was about CA$0.14. This is nice to see since it implies that insiders might see value around current prices. 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!

insider-trading-volume
insider-trading-volume

Environmental Waste International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Environmental Waste International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Environmental Waste International insiders own about CA$3.4m worth of shares. That equates to 17% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Environmental Waste International Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives 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 Environmental Waste International 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. For example, Environmental Waste International has 6 warning signs (and 3 which are significant) we think you should know about.

But note: Environmental Waste International 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.