Insiders who acquired US$163.6k worth of Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) stock at an average price of US$2.13 in the past 12 months may be dismayed by the recent 28% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$98.2k, which is not great.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Eos Energy Enterprises
Eos Energy Enterprises Insider Transactions Over The Last Year
The CEO & Director Joseph Mastrangelo made the biggest insider purchase in the last 12 months. That single transaction was for US$75k worth of shares at a price of US$2.05 each. That means that even when the share price was higher than US$1.28 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 76.70k shares for US$164k. But insiders sold 20.14k shares worth US$56k. In the last twelve months there was more buying than selling by Eos Energy Enterprises insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Eos Energy Enterprises is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Eos Energy Enterprises Insiders Bought Stock Recently
There was some insider buying at Eos Energy Enterprises over the last quarter. In that period CEO & Director Joseph Mastrangelo spent US$75k on shares. On the other hand, Independent Director Claude Demby sold US$56k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
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. From looking at our data, insiders own US$3.0m worth of Eos Energy Enterprises stock, about 1.5% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Eos Energy Enterprises Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eos Energy Enterprises. You'd be interested to know, that we found 4 warning signs for Eos Energy Enterprises and we suggest you have a look.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.