Whilst it may not be a huge deal, we thought it was good to see that the Eneraqua Technologies plc (LON:ETP) Independent Non-Executive Chair, Richard Guy Stenhouse, recently bought UK£53k worth of stock, for UK£1.94 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 38%.
See our latest analysis for Eneraqua Technologies
Eneraqua Technologies Insider Transactions Over The Last Year
In fact, the recent purchase by Richard Guy Stenhouse was the biggest purchase of Eneraqua Technologies shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.75). 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. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Eneraqua Technologies insiders bought shares during the last year, they didn’t sell. Their average price was about UK£1.84. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Eneraqua Technologies Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Eneraqua Technologies insiders own 64% of the company, worth about UK£37m. 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 Eneraqua Technologies Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Eneraqua Technologies. Looks promising! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Eneraqua Technologies. Be aware that Eneraqua Technologies is showing 3 warning signs in our investment analysis, and 2 of those are significant…
But note: Eneraqua Technologies 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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