Yahoo Finance The Founder & Executive Director of EP&T Global Limited (ASX:EPX), Keith Gunaratne, Just Bought 1.3% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the EP&T Global Limited (ASX:EPX) Founder & Executive Director, Keith Gunaratne, recently bought AU$120k worth of stock, for AU$0.13 per share. However, it only increased their shares held by 1.3%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for EP&T Global
The Last 12 Months Of Insider Transactions At EP&T Global
Notably, that recent purchase by Founder & Executive Director Keith Gunaratne was not the only time they bought EP&T Global shares this year. They previously made an even bigger purchase of AU$2.0m worth of shares at a price of AU$0.15 per share. That means that an insider was happy to buy shares at above the current price of AU$0.13. 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.
EP&T Global insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
EP&T Global is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. EP&T Global insiders own about AU$13m worth of shares (which is 41% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At EP&T Global Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about EP&T Global. That's what I like to see! 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. For instance, we've identified 4 warning signs for EP&T Global (1 makes us a bit uncomfortable) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.
