Yahoo Finance EchoStar Corporation (NASDAQ:SATS) insiders' US$507k purchase saw a boost of US$6.1k after market cap rose US$225m
Last week, EchoStar Corporation (NASDAQ:SATS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a US$225m increase in the company's market worth. Put another way, the original US$507k acquisition is now worth US$514k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for EchoStar
The Last 12 Months Of Insider Transactions At EchoStar
Over the last year, we can see that the biggest insider purchase was by Director R. Dodge for US$495k worth of shares, at about US$24.17 per share. That implies that an insider found the current price of US$24.52 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months EchoStar insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
EchoStar 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.
Insiders at EchoStar Have Bought Stock Recently
It's good to see that EchoStar insiders have made notable investments in the company's shares. Specifically, Director R. Dodge bought US$495k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does EchoStar Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that EchoStar insiders own 30% of the company, worth about US$615m. 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 EchoStar Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest EchoStar insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that EchoStar has 1 warning sign and it would be unwise to ignore it.
Of course EchoStar may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
