With inventories up 14%, insiders of Elecon Engineering Company Limited (NSE: ELECON) must wish they had bought more last year
Last week, Elecon Engineering Company Limited (NSE: ELECON) Insiders, who had bought shares in the previous 12 months were generously rewarded. The shares rose 14% last week, leading to a 2.7 billion yen increase in the market value of the company. In other words, the initial purchase of 2.5 million yen is now worth 3.0 million yen.
While we don’t think shareholders should just follow insider trading, logic dictates that you pay attention to whether insiders are buying or selling stocks.
Check out our latest review for Elecon Engineering
Elecon Engineering insider trading in the past year
There hasn’t been a very large single trade in the past year, but we can still see some trade.
While Elecon Engineering insiders have bought shares over the past year, they haven’t sold. The chart below shows insider trading (by businesses and individuals) over the past year. By clicking on the graph below, you can see the exact detail of each insider trade!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: the insiders bought them).
Insider Ownership of Elecon Engineering
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Elecon Engineering insiders own around 1.8 billion yen of shares. This equates to 8.2% of the business. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.
What could insider trading tell us at Elecon Engineering?
There haven’t been any insider trading in the past three months, that doesn’t mean much. On a more positive note, the transactions of the past year are encouraging. It would be great to see more insider buying, but overall it looks like Elecon Engineering insiders are reasonably well aligned (owning a significant share of the company’s stock) and optimistic for the future. . I like to dive deeper on the performance of a company in the past. You can find the history of income and earnings in this detailed graphic.
Sure Elecon Engineering may not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.