Patti Humble Bought 273% More Shares In Ecovyst
Investors who take an interest in Ecovyst Inc. (NYSE:ECVT) should definitely note that the Independent Director, Patti Humble, recently paid US$10.05 per share to buy US$250k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 273%.
Ecovyst Insider Transactions Over The Last Year
Notably, that recent purchase by Patti Humble is the biggest insider purchase of Ecovyst 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$10.54. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Patti Humble was the only individual insider to buy shares in the last twelve months.
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!
Check out our latest analysis for Ecovyst
Ecovyst 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 Ecovyst Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Ecovyst insiders own 1.9% of the company, worth about US$21m. 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 Ecovyst Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Ecovyst insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Ecovyst has 3 warning signs we think you should be aware of.
But note: Ecovyst 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 of direct interests only, but not derivative transactions or indirect interests.
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