ECN Capital Corp. (TSE:ECN) insiders placed bullish bets worth US$24m in the last 12 months

In the last year, multiple insiders have substantially increased their holdings of ECN Capital Corp. (TSE:ECN) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for ECN Capital

ECN Capital Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Matthew Nelson for CA$7.0m worth of shares, at about CA$5.27 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$5.88. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid CA$24m for 4.15m shares. But insiders sold 259.10k shares worth CA$2.7m. In the last twelve months there was more buying than selling by ECN Capital insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ECN Capital 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.

ECN Capital Insiders Bought Stock Recently

Over the last quarter, ECN Capital insiders have spent a meaningful amount on shares. In total, insiders bought CA$744k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that ECN Capital insiders own 9.9% of the company, worth about CA$144m. 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 ECN Capital Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about ECN Capital. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for ECN Capital you should be aware of.

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.

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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.