Insiders Rewarded With US$488k Addition To Investment As electroCore Stock Hits US$73m

Last week, electroCore, Inc. (NASDAQ:ECOR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 23% last week, resulting in a US$13m increase in the company's market worth, implying a 72% gain on their initial purchase. As a result, the stock they originally bought for US$675.8k is now worth US$1.16m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for electroCore

The Last 12 Months Of Insider Transactions At electroCore

The CEO & Director Daniel Goldberger made the biggest insider purchase in the last 12 months. That single transaction was for US$248k worth of shares at a price of US$6.43 each. Even though the purchase was made at a significantly lower price than the recent price (US$11.05), 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.

While electroCore insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

electroCore Insiders Bought Stock Recently

We saw some electroCore insider buying shares in the last three months. Founder & Independent Director Thomas Errico shelled out US$31k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. electroCore insiders own about US$17m worth of shares. That equates to 23% 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 Do The electroCore Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in electroCore and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for electroCore you should be aware of.

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.