Investors who take an interest in Exco Technologies Limited( TSE:XTC ) should definitely note that the President, Darren Kirk, recently paid CA$6.69 per share to buy CA$243k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 66%.
Exco Technologies Insider Transactions Over The Last Year
Notably, that recent purchase by Darren Kirk is the biggest insider purchase of Exco Technologies shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$6.80. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Exco Technologies insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 50.30k shares worth CA$334k. But insiders sold 37.00k shares worth CA$253k. In the last twelve months there was more buying than selling by Exco Technologies insiders. 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 Exco Technologies
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. Exco Technologies insiders own about CA$135m worth of shares (which is 52% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Exco Technologies Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Exco Technologies. Looks promising! While it's good to be aware of 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. Every company has risks, and we've spotted 1 warning sign for Exco Technologies you should know about.
Of course Exco Technologies 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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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.
