Bullish Custom Truck One Source Insiders Loaded Up On US$1.76m Of Stock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Custom Truck One Source, Inc. (NYSE:CTOS), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Custom Truck One Source

The Last 12 Months Of Insider Transactions At Custom Truck One Source

In the last twelve months, the biggest single purchase by an insider was when Independent Director Mark Ein bought US$496k worth of shares at a price of US$4.96 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.58). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Custom Truck One Source insiders bought shares during the last year, they didn't sell. Their average price was about US$4.45. This is nice to see since it implies that insiders might see value around current prices. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Custom Truck One Source Insiders Bought Stock Recently

Over the last quarter, Custom Truck One Source insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$436k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Custom Truck One Source

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. Custom Truck One Source insiders own about US$34m worth of shares. That equates to 4.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Custom Truck One Source Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Custom Truck One Source insiders are well aligned, and that they may think the share price is too low. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Custom Truck One Source.

But note: Custom Truck One Source may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.