Eneraqua Technologies CEO & Executive Director Acquires 5.5% More Stock

Potential Eneraqua Technologies plc (LON:ETP) shareholders may wish to note that the CEO & Executive Director, Mitesh Dhanak, recently bought UK£128k worth of stock, paying UK£0.40 for each share. Although the purchase only increased their holding by 5.5%, it is still a solid purchase in our view.

See our latest analysis for Eneraqua Technologies

Eneraqua Technologies Insider Transactions Over The Last Year

In fact, the recent purchase by Mitesh Dhanak was the biggest purchase of Eneraqua Technologies shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (UK£0.46), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Eneraqua Technologies insiders bought shares during the last year, they didn't sell. The average buy price was around UK£0.61. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Eneraqua Technologies insiders own about UK£9.9m worth of shares (which is 65% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Eneraqua Technologies Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Eneraqua Technologies. 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. At Simply Wall St, we've found that Eneraqua Technologies has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.