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Even if it's not a huge purchase, we think it was good to see that Robert Rasmus, the CEO, President & Director of Arq, Inc. (NASDAQ:ARQ) recently shelled out US$61k to buy stock, at US$3.94 per share. Although the purchase is not a big one, increasing their shareholding by only 1.6%, it can be interpreted as a good sign.
Arq Insider Transactions Over The Last Year
In fact, the recent purchase by CEO, President & Director Robert Rasmus was not their only acquisition of Arq shares this year. They previously made an even bigger purchase of US$131k worth of shares at a price of US$5.25 per share. That means that even when the share price was higher than US$4.68 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 46.12k shares for US$215k. But they sold 20.59k shares for US$96k. In total, Arq insiders bought more than they sold over the last year. Their average price was about US$4.65. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Arq
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.
Insider Ownership Of Arq
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 19% of Arq shares, worth about US$37m. 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 Does This Data Suggest About Arq Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Arq and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Arq (1 is significant!) and we strongly recommend you look at these before investing.