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From what we can see, insiders were net buyers in ECP Emerging Growth Limited's (ASX:ECP ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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.
View our latest analysis for ECP Emerging Growth
ECP Emerging Growth Insider Transactions Over The Last Year
The insider Emmanuel Pohl made the biggest insider purchase in the last 12 months. That single transaction was for AU$379k worth of shares at a price of AU$1.58 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.42). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Emmanuel Pohl.
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!
ECP Emerging Growth is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of ECP Emerging Growth
Many investors like to check how much of a company is owned by insiders. 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 35% of ECP Emerging Growth shares, worth about AU$9.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At ECP Emerging Growth Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest ECP Emerging Growth insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ECP Emerging Growth. To help with this, we've discovered 5 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in ECP Emerging Growth.