It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in ESS Tech, Inc.'s (NYSE:GWH) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for ESS Tech

The Last 12 Months Of Insider Transactions At ESS Tech

The Chairman Harry Quarls made the biggest insider purchase in the last 12 months. That single transaction was for US$102k worth of shares at a price of US$1.27 each. That means that an insider was happy to buy shares at above the current price of US$0.81. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months ESS Tech insiders were buying shares, but not selling. Their average price was about US$1.10. 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!

ESS Tech is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At ESS Tech Have Bought Stock Recently

It's good to see that ESS Tech insiders have made notable investments in the company's shares. In total, insiders bought US$84k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does ESS Tech Boast High Insider Ownership?

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. Insiders own 8.2% of ESS Tech shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.