Independent Non-Executive Director of Eurocell Iraj Amiri Buys 839% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Eurocell plc (LON:ECEL) Independent Non-Executive Director, Iraj Amiri, recently bought UK£66k worth of stock, for UK£1.19 per share. While that isn't the hugest buy, it actually boosted their shareholding by 839%, which is good to see.

Check out our latest analysis for Eurocell

Eurocell Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman of the Board Derek Mapp bought UK£128k worth of shares at a price of UK£1.28 per share. That implies that an insider found the current price of UK£1.31 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Eurocell insiders decided to buy shares at close to current prices.

In the last twelve months Eurocell insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Eurocell insiders own 0.7% of the company, worth about UK£1.1m. We prefer to see high levels of insider ownership.

So What Do The Eurocell Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Eurocell stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Eurocell you should be aware of.

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

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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.