Stock Analysis

Electro Optic Systems Holdings Limited (ASX:EOS) drops to AU$287m and insiders who purchased earlier this year lose another AU$87k

ASX:EOS
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Insiders who acquired AU$163k worth of Electro Optic Systems Holdings Limited's (ASX:EOS) stock at an average price of AU$4.10 in the past 12 months may be dismayed by the recent 12% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$76k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Electro Optic Systems Holdings

The Last 12 Months Of Insider Transactions At Electro Optic Systems Holdings

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months insiders purchased 39.74k shares for AU$163k. But insiders sold 12.00k shares worth AU$51k. In the last twelve months there was more buying than selling by Electro Optic Systems Holdings insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:EOS Insider Trading Volume January 26th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Electro Optic Systems Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Electro Optic Systems Holdings insiders own 12% of the company, worth about AU$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Electro Optic Systems Holdings Insiders?

The fact that there have been no Electro Optic Systems Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Electro Optic Systems Holdings insiders are doubting the company, and they do own shares. 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. At Simply Wall St, we found 2 warning signs for Electro Optic Systems Holdings that deserve your attention before buying any shares.

Of course Electro Optic Systems Holdings 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.

Valuation is complex, but we're here to simplify it.

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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.