Insiders acquired stock in large numbers last year

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in ECO Animal Health Group plc’s (LON:EAH) instance, it’s good news for 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.

View our latest analysis for ECO Animal Health Group

ECO Animal Health Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CFO, Finance Director Christopher Wilks for UK£56k worth of shares, at about UK£1.60 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.07). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take a careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they are paid above the current price, as it suggests they saw value, even at higher levels.

While ECO Animal Health Group insiders bought shares during the last year, they didn’t sell. Their average price was about UK£1.29. I’d consider this a positive as it suggests insiders see value around the current 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!

insider-trading-volume

insider-trading-volume

ECO Animal Health Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are ECO Animal Health Group Insiders Buying Or Selling?

We saw some ECO Animal Health Group insider buying shares in the last three months. Non-Executive Director Tracey James shelled out UK£4.5k for shares in that time. We like it when there are only buyers and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of ECO Animal Health Group

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 incentivized to build the company for the long term. Insiders own 11% of ECO Animal Health Group shares, worth about UK£7.7m, according to our data. We do generally prefer to see higher levels of insider ownership.

What Might The Insider Transactions At ECO Animal Health Group Tell Us?

We note that there has been a bit of insider buying recently (but no selling). Overall the buying isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think ECO Animal Health Group insiders are doubting 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. You’d be interested to know what we found 2 warning signs for ECO Animal Health Group and we suggest you have a look.

Of course ECO Animal Health Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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