Should You Take Comfort From Insider Transactions At Evoqua Water Technologies Corp. (NYSE:AQUA)?

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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Evoqua Water Technologies Corp. (NYSE:AQUA).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

Check out our latest analysis for Evoqua Water Technologies

Evoqua Water Technologies Insider Transactions Over The Last Year

President Ronald Keating made the biggest insider purchase in the last 12 months. That single transaction was for US$501k worth of shares at a price of US$9.37 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.82. But because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.

In the last twelve months insiders paid US$911k for 98345 shares purchased. While Evoqua Water Technologies insiders bought shares last year, they didn’t sell. You can see a visual depiction of insider transactions (by 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!

NYSE:AQUA Recent Insider Trading, June 12th 2019
NYSE:AQUA Recent Insider Trading, June 12th 2019

Evoqua Water Technologies 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.

Does Evoqua Water Technologies Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Evoqua Water Technologies insiders own 0.6% of the company, worth about US$8.2m. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Does This Data Suggest About Evoqua Water Technologies Insiders?

It doesn’t really mean much that no insider has traded Evoqua Water Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Evoqua Water Technologies insiders are doubting the company. Of course, the future is what matters most. So if you are interested in Evoqua Water Technologies, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.