Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Eos Energy Enterprises Stock
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 Eos Energy Enterprises, Inc. (NASDAQ:EOSE), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Eos Energy Enterprises
Eos Energy Enterprises Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Joseph Mastrangelo bought US$75k worth of shares at a price of US$2.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.82). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 81.70k shares for US$169k. But they sold 20.14k shares for US$56k. Overall, Eos Energy Enterprises insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Eos Energy Enterprises is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Eos Energy Enterprises Insiders Buying Or Selling?
We saw some Eos Energy Enterprises insider buying shares in the last three months. Independent Director Alexander Dimitrief purchased US$5.6k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Eos Energy Enterprises insiders have about 2.3% of the stock, worth approximately US$3.8m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Eos Energy Enterprises Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Eos Energy Enterprises insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Eos Energy Enterprises (3 are a bit concerning!) that we believe deserve your full attention.
But note: Eos Energy Enterprises 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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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.
