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Whilst it may not be a huge deal, we thought it was good to see that the Eneraqua Technologies plc (LON:ETP) Independent Non-Executive Chair, Richard Guy Stenhouse, recently bought UK£50k worth of stock, for UK£1.00 per share. Even though that isn't a massive buy, it did increase their holding by 51%, which is arguably a good sign.
Check out our latest analysis for Eneraqua Technologies
The Last 12 Months Of Insider Transactions At Eneraqua Technologies
Notably, that recent purchase by Independent Non-Executive Chair Richard Guy Stenhouse was not the only time they bought Eneraqua Technologies shares this year. Earlier in the year, they paid UK£2.10 per share in a UK£53k purchase. That means that even when the share price was higher than UK£0.95 (the recent price), an insider wanted to purchase shares. 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 Eneraqua Technologies insiders were buying shares, but not selling. Their average price was about UK£1.36. These transactions suggest that insiders have considered the current price attractive. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Eneraqua Technologies insiders own 65% of the company, worth about UK£20m. 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 Does This Data Suggest About Eneraqua Technologies Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Eneraqua Technologies insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Eneraqua Technologies has 3 warning signs (and 1 which is concerning) we think you should know about.