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From what we can see, insiders were net buyers in Environmental Clean Technologies Limited's (ASX:ECT ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Environmental Clean Technologies
Environmental Clean Technologies Insider Transactions Over The Last Year
The insider Lloyd Thomson made the biggest insider purchase in the last 12 months. That single transaction was for AU$750k worth of shares at a price of AU$0.005 each. That means that an insider was happy to buy shares at above the current price of AU$0.0025. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Lloyd Thomson was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Environmental Clean Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Environmental Clean Technologies Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Environmental Clean Technologies insiders own 46% of the company, worth about AU$2.7m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Environmental Clean Technologies Insider Transactions Indicate?
The fact that there have been no Environmental Clean Technologies insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Environmental Clean Technologies insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Environmental Clean Technologies you should be aware of, and 4 of them shouldn't be ignored.