Whilst it may not be a huge deal, we thought it was good to see that the Eclipx Group Limited (ASX:ECX) Independent Non-Executive Director, Russell Shields, recently bought AU$97k worth of stock, for AU$1.95 per share. That purchase might not be huge but it did increase their holding by 18%.
The Last 12 Months Of Insider Transactions At Eclipx Group
Notably, that recent purchase by Russell Shields is the biggest insider purchase of Eclipx Group shares that we've seen in the last year. That implies that an insider found the current price of AU$1.98 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Eclipx Group share holders is that insiders were buying at near the current price.
In the last twelve months Eclipx Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Eclipx Group 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.
Many investors like to check how much of a company is owned by 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. Based on our data, Eclipx Group insiders have about 0.5% of the stock, worth approximately AU$2.5m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Eclipx Group 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Eclipx Group insiders are expecting a bright 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. Be aware that Eclipx Group is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course Eclipx Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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