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Looking at Eurocell plc's (LON:ECEL ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
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.
See our latest analysis for Eurocell
The Last 12 Months Of Insider Transactions At Eurocell
The Independent Non-Executive Director Iraj Amiri made the biggest insider purchase in the last 12 months. That single transaction was for UK£66k worth of shares at a price of UK£1.19 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.71. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of 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!
Eurocell 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 Eurocell 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. Based on our data, Eurocell insiders have about 0.7% of the stock, worth approximately UK£1.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
What Might The Insider Transactions At Eurocell Tell Us?
The fact that there have been no Eurocell insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Eurocell stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eurocell. Case in point: We've spotted 1 warning sign for Eurocell you should be aware of.
Of course Eurocell may not be the best stock to buy. So you may wish to see this free collection of high quality companies.