electroCore Insider Buyers See Boost After Market Cap Rose US$11m

electroCore, Inc. (NASDAQ:ECOR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a US$11m addition to the company’s market value. As a result, their original purchase of US$675.8k worth of stock is now worth US$1.90m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for electroCore

The Last 12 Months Of Insider Transactions At electroCore

Over the last year, we can see that the biggest insider purchase was by CEO & Director Daniel Goldberger for US$248k worth of shares, at about US$6.43 per share. Even though the purchase was made at a significantly lower price than the recent price (US$17.99), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months electroCore insiders were buying shares, but not selling. 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!

electroCore is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does electroCore Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that electroCore insiders own 23% of the company, worth about US$26m. 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 electroCore Insiders?

The fact that there have been no electroCore insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think electroCore insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing electroCore. You'd be interested to know, that we found 2 warning signs for electroCore and we suggest you have a look.

But note: electroCore 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.