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Insider Buying: The EnviroLeach Technologies Inc. (CSE:ETI) Independent Director Just Bought CA$113k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Kenneth McNaughton, the Independent Director of EnviroLeach Technologies Inc. (CSE:ETI) recently shelled out CA$113k to buy stock, at CA$0.75 per share. Even though that isn't a massive buy, it did increase their holding by 60%, which is a arguably a good sign.

Check out our latest analysis for EnviroLeach Technologies

The Last 12 Months Of Insider Transactions At EnviroLeach Technologies

Notably, that recent purchase by Kenneth McNaughton is the biggest insider purchase of EnviroLeach 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$0.75. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for EnviroLeach Technologies share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 349.94k shares worth CA$280k. But insiders sold 113800 shares worth CA$112k. In total, EnviroLeach Technologies insiders bought more than they sold over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

CNSX:ETI Recent Insider Trading March 30th 2020
CNSX:ETI Recent Insider Trading March 30th 2020

EnviroLeach Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of EnviroLeach Technologies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that EnviroLeach Technologies insiders own about CA$3.3m worth of shares (which is 5.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The EnviroLeach Technologies Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on EnviroLeach Technologies stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for EnviroLeach Technologies (of which 2 are concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.