Director of Global Water Resources Andrew Cohn Buys 12% More Shares

Global Water Resources, Inc. (NASDAQ:GWRS) shareholders (or potential shareholders) will be happy to see that the Director, Andrew Cohn, recently bought a whopping US$2.5m worth of stock, at a price of US$10.00. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.

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The Last 12 Months Of Insider Transactions At Global Water Resources

Notably, that recent purchase by Andrew Cohn is the biggest insider purchase of Global Water Resources 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$10.36. Of course they may have changed their mind. But this suggests they are optimistic. 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 Global Water Resources insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$2.5m for 252.61k shares. But insiders sold 2.05k shares worth US$25k. Overall, Global Water Resources insiders were net buyers during the last year. 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!

See our latest analysis for Global Water Resources

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

Does Global Water Resources Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.8% of Global Water Resources shares, worth about US$27m. 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 Global Water Resources Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Global Water Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Global Water Resources you should know about.

Of course Global Water Resources 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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