Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Ecora Resources PLC (LON:ECOR), that sends out a positive message to the company's shareholders.
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.
See our latest analysis for Ecora Resources
Ecora Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Marc Lafleche bought UK£60k worth of shares at a price of UK£1.51 per share. That means that even when the share price was higher than UK£1.16 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Ecora Resources 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Ecora Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Ecora Resources Have Bought Stock Recently
It's good to see that Ecora Resources insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£91k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. From looking at our data, insiders own UK£1.8m worth of Ecora Resources stock, about 0.6% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Ecora Resources Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ecora Resources stock. 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 Ecora Resources is showing 4 warning signs in our investment analysis, and 1 of those is significant...