Insider Stock Buyers At Environmental Clean Technologies Recouped Some Losses This Week

Insiders who bought AU$749.8k worth of Environmental Clean Technologies Limited (ASX:ECT) stock in the last year have seen some of their losses recouped as the stock gained 50% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$300k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Environmental Clean Technologies Insider Transactions Over The Last Year

The insider Lloyd Thomson made the biggest insider purchase in the last 12 months. That single transaction was for AU$750k worth of shares at a price of AU$0.005 each. That means that an insider was happy to buy shares at above the current price of AU$0.003. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Lloyd Thomson was the only individual insider to buy shares in the last twelve months.

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!

View our latest analysis for Environmental Clean Technologies

Environmental Clean Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Environmental Clean Technologies

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Environmental Clean Technologies insiders own 40% of the company, worth about AU$3.3m. 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 Do The Environmental Clean Technologies Insider Transactions Indicate?

The fact that there have been no Environmental Clean Technologies insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Environmental Clean Technologies and we see no evidence to suggest they are worried about the future. While it's good to be aware of 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. Case in point: We've spotted 5 warning signs for Environmental Clean Technologies you should be aware of.

But note: Environmental Clean Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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.