Insiders Rewarded With US$211k Addition To Investment As CVD Equipment Stock Hits US$52m

CVD Equipment Corporation (NASDAQ:CVV) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 41%, resulting in a US$15m rise in the company's market capitalisation. In other words, the original US$574k purchase is now worth US$786k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for CVD Equipment

CVD Equipment Insider Transactions Over The Last Year

In fact, the recent purchase by Andrew Africk was the biggest purchase of CVD Equipment shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Andrew Africk bought 102.04k shares over the last 12 months at an average price of US$5.63. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.

Insider Ownership Of CVD Equipment

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. A high insider ownership often makes company leadership more mindful of shareholder interests. CVD Equipment insiders own about US$11m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The CVD Equipment Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in CVD Equipment shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CVD Equipment. For instance, we've identified 2 warning signs for CVD Equipment (1 shouldn't be ignored) you should be aware of.

But note: CVD Equipment 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, but not derivative transactions.

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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.