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Quite a few insiders have dramatically grown their holdings in Eddy Smart Home Solutions Ltd. (CVE:EDY) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Eddy Smart Home Solutions
Eddy Smart Home Solutions Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman of the Board Mark Silver was not their only acquisition of Eddy Smart Home Solutions shares this year. They previously made an even bigger purchase of CA$2.7m worth of shares at a price of CA$1.50 per share. We do like to see buying, but this purchase was made at well below the current price of CA$2.30. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Eddy Smart Home Solutions insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Eddy Smart Home Solutions Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Eddy Smart Home Solutions. Specifically, Executive Chairman of the Board Mark Silver bought CA$110k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership
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. Eddy Smart Home Solutions insiders own 56% of the company, currently worth about CA$7.9m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Eddy Smart Home Solutions Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Eddy Smart Home Solutions. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eddy Smart Home Solutions. To help with this, we've discovered 5 warning signs (4 are a bit unpleasant!) that you ought to be aware of before buying any shares in Eddy Smart Home Solutions.