Insider Spends US$1.2m Buying More Shares In EchoStar

EchoStar Corporation (NASDAQ:SATS) shareholders (or potential shareholders) will be happy to see that the Director, James DeFranco, recently bought a whopping US$1.2m worth of stock, at a price of US$13.21. While that only increased their holding size by 2.0%, it is still a big swing by our standards.

Check out our latest analysis for EchoStar

The Last 12 Months Of Insider Transactions At EchoStar

Notably, that recent purchase by James DeFranco is the biggest insider purchase of EchoStar shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$15.24. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

EchoStar is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. EchoStar insiders own 17% of the company, currently worth about US$696m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The EchoStar Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about EchoStar. That's what I like to see! While we like knowing 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 3 warning signs for EchoStar you should be aware of, and 2 of these are a bit concerning.

Of course EchoStar 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.