As ECS Botanics Holdings Ltd (ASX:ECS) hits AU$31m market cap, insiders may be dismayed about not purchasing higher quantities
Insiders who bought ECS Botanics Holdings Ltd (ASX:ECS) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$3.3m as a result of the stock's 12% gain over the same period. In other words, the original AU$119k purchase is now worth AU$175k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for ECS Botanics Holdings
ECS Botanics Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Nan-Maree Schoerie for AU$90k worth of shares, at about AU$0.018 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.028. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While ECS Botanics Holdings insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
ECS Botanics Holdings 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.
Insiders At ECS Botanics Holdings Have Bought Stock Recently
There was some insider buying at ECS Botanics Holdings over the last quarter. Non-Executive Chairman Jeremy King shelled out AU$29k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that ECS Botanics Holdings insiders own 24% of the company, worth about AU$7.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About ECS Botanics Holdings Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in ECS Botanics Holdings and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in ECS Botanics Holdings.
Of course ECS Botanics 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.
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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.
ECS Botanics Holdings
ECS Botanics Holdings Ltd engages in the cultivation, manufacture, and sale of medicinal cannabis products.
Flawless balance sheet with questionable track record.