Insider Buyers Lose Additional US$45k As Ethernity Networks Dips To UK£512k

Insiders who acquired US$46.8k worth of Ethernity Networks Ltd.'s (LON:ENET) stock at an average price of US$0.07 in the past 12 months may be dismayed by the recent 65% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$1.8k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Ethernity Networks

The Last 12 Months Of Insider Transactions At Ethernity Networks

Over the last year, we can see that the biggest insider purchase was by Founder Shavit Baruch for UK£47k worth of shares, at about UK£0.07 per share. That means that even when the share price was higher than UK£0.0027 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Shavit Baruch was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ethernity Networks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Ethernity Networks

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Ethernity Networks insiders own 8.3% of the company, worth about UK£42k. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Ethernity Networks Insiders?

The fact that there have been no Ethernity Networks insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Ethernity Networks 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. For example, Ethernity Networks has 6 warning signs (and 5 which are a bit concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.