Insider Stock Buying Reaches US$643.7k On Ecovyst

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Ecovyst Inc. (NYSE:ECVT), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Ecovyst

Ecovyst Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Jonny Ginns for US$367k worth of shares, at about US$9.09 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.83). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Ecovyst insiders may have bought shares in the last year, but they didn't sell any. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Ecovyst Insiders Bought Stock Recently

It's good to see that Ecovyst insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$78k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Ecovyst 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Ecovyst insiders own about US$39m worth of shares. That equates to 3.8% 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.

What Might The Insider Transactions At Ecovyst Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Ecovyst shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we found 1 warning sign for Ecovyst that deserve your attention before buying any shares.

Of course Ecovyst may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.