Insider Spends US$61k Buying More Shares In Arq

Whilst it may not be a huge deal, we thought it was good to see that the Arq, Inc. (NASDAQ:ARQ) CEO, President & Director, Robert Rasmus, recently bought US$61k worth of stock, for US$3.94 per share. However, it only increased their shares held by 1.6%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Arq

In fact, the recent purchase by CEO, President & Director Robert Rasmus was not their only acquisition of Arq shares this year. Earlier in the year, they paid US$5.25 per share in a US$131k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.68). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$215k for 46.12k shares. But insiders sold 20.59k shares worth US$96k. Overall, Arq insiders were net buyers during the last year. Their average price was about US$4.65. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Arq

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

Insider Ownership Of Arq

For a common shareholder, it is worth checking how many shares are held by company 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. Arq insiders own about US$37m worth of shares. That equates to 19% of the company. 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?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Arq insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Arq is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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.