Investors who take an interest in EchoStar Corporation (NASDAQ:SATS) should definitely note that the Chief Strategy Officer, Anders Johnson, recently paid US$23.45 per share to buy US$469k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 653%, potentially signalling some real optimism.
EchoStar Insider Transactions Over The Last Year
Notably, that recent purchase by Anders Johnson is the biggest insider purchase of EchoStar shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$25.26. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the EchoStar insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Anders Johnson.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
EchoStar is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. EchoStar insiders own about US$1.2b worth of shares (which is 50% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About EchoStar Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest EchoStar insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. While conducting our analysis, we found that EchoStar has 1 warning sign and it would be unwise to ignore this.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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