Insiders Could Have Profited By Holding onto CECO Environmental Shares Despite 16% Drop
CECO Environmental Corp.'s (FRA:WCE) value has fallen 16% in the last week, but insiders who sold US$9.0m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$82.81 is still lower than the current share price.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At CECO Environmental
The Lead Independent Director, Jason DeZwirek, made the biggest insider sale in the last 12 months. That single transaction was for €5.8m worth of shares at a price of €85.45 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (€50.30). So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of CECO Environmental shares, than buying. 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!
Check out our latest analysis for CECO Environmental
I will like CECO Environmental better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does CECO Environmental Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that CECO Environmental insiders own 6.0% of the company, worth about €202m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About CECO Environmental Insiders?
The fact that there have been no CECO Environmental insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the CECO Environmental insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CECO Environmental. Case in point: We've spotted 2 warning signs for CECO Environmental you should be aware of, and 1 of these is potentially serious.
Of course CECO Environmental may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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