It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell EnviroLeach Technologies Inc. (CNSX:ETI), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for EnviroLeach Technologies
The Last 12 Months Of Insider Transactions At EnviroLeach Technologies
Over the last year, we can see that the biggest insider sale was by Director Gregory Pendura for CA$125k worth of shares, at about CA$2.04 per share. That is hardly a positive sign, even though it took place above the latest price (CA$0.94). So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of EnviroLeach Technologies shares, than buying. The average sell price was around CA$2.03. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (CA$0.94), so it probably doesn't tell us a lot about the value on offer today. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.
EnviroLeach Technologies Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at EnviroLeach Technologies. Duane Nelson bought CA$112k worth of shares in that time. On the other hand, President Duane Nelson sold CA$69k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that EnviroLeach Technologies insiders own 6.8% of the company, worth about CA$3.6m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At EnviroLeach Technologies Tell Us?
Insider purchases have outweighed sales, in the last three months. But overall the difference isn't worth writing home about. Recent sales exacerbate our caution arising from analysis of EnviroLeach Technologies insider transactions. And usually insiders own more stock in the company, according to our data. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: EnviroLeach Technologies may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.