Arq Gains 17%, Insider Trades Reap Benefit

Arq, Inc. (NASDAQ:ARQ) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a US$36m rise in the company's market capitalisation, translating to a gain of 177% on their initial investment. As a result, the stock they originally bought for US$415.2k is now worth US$1.15m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Arq

The Last 12 Months Of Insider Transactions At Arq

In the last twelve months, the biggest single purchase by an insider was when Chief Technology Officer Joseph Wong bought US$224k worth of shares at a price of US$2.53 per share. We do like to see buying, but this purchase was made at well below the current price of US$6.76. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Joseph Wong bought a total of 170.00k shares over the year at an average price of US$2.44. 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!

Arq is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Arq

Many investors like to check how much of a company is owned by 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. Insiders own 20% of Arq shares, worth about US$43m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Arq Insider Transactions Indicate?

The fact that there have been no Arq insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Arq and their transactions don't cause us concern. 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. Every company has risks, and we've spotted 1 warning sign for Arq you should know about.

But note: Arq 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com