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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in EP&T Global Limited's (ASX:EPX) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for EP&T Global
The Last 12 Months Of Insider Transactions At EP&T Global
In fact, the recent purchase by Paul Oneile was the biggest purchase of EP&T Global shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.022. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the EP&T Global insiders decided to buy shares at close to current prices.
EP&T Global insiders may have bought shares in the last year, but they didn't sell any. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At EP&T Global Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at EP&T Global. Independent Non-Executive Chair Paul Oneile spent AU$100k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership Of EP&T Global
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. Insiders own 32% of EP&T Global shares, worth about AU$4.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The EP&T Global Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in EP&T Global shares, given these transactions (along with notable insider ownership of the company). 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 EP&T Global is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...