Pleasing Signs As A Number Of Insiders Buy Environmental Clean...

Pleasing Signs As A Number Of Insiders Buy Environmental Clean Technologies Stock
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Simply Wall St
Published April 06, 2024
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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 Environmental Clean Technologies Limited (ASX:ECT), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Environmental Clean Technologies

Environmental Clean Technologies Insider Transactions Over The Last Year
The insider Lloyd Thomson made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.0055 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.005). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 Environmental Clean Technologies insiders bought shares during the last year, they didn't sell. 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!

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ASX:ECT Insider Trading Volume April 6th 2024
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.

Does Environmental Clean Technologies 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. We usually like to see fairly high levels of insider ownership. It appears that Environmental Clean Technologies insiders own 40% of the company, worth about AU$4.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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