Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of CECO Environmental Corp. (NASDAQ:CECO), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for CECO Environmental
The Last 12 Months Of Insider Transactions At CECO Environmental
Over the last year, we can see that the biggest insider purchase was by Independent Director Richard Wallman for US$179k worth of shares, at about US$8.97 per share. We do like to see buying, but this purchase was made at well below the current price of US$14.38. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 70.36k shares worth US$527k. On the other hand they divested 11.00k shares, for US$127k. In total, CECO Environmental insiders bought more than they sold over the last year. They paid about US$7.50 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
CECO Environmental is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At CECO Environmental Have Sold Stock Recently
We've seen more insider selling than insider buying at CECO Environmental recently. In total, CEO & Director Todd Gleason sold US$127k worth of shares in that time. On the other hand we note Chief Operating Officer Ramesh Nuggihalli bought US$2.8k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership Of CECO Environmental
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 7.8% of CECO Environmental shares, worth about US$38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About CECO Environmental Insiders?
Unfortunately, there has been more insider selling of CECO Environmental stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of CECO Environmental.
But note: CECO Environmental 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.
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