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Those following along with Custom Truck One Source, Inc. (NYSE:CTOS) will no doubt be intrigued by the recent purchase of shares by Mark Ein, Independent Director of the company, who spent a stonking US$2.1m on stock at an average price of US$5.91. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 5.2%.
Custom Truck One Source Insider Transactions Over The Last Year
Notably, that recent purchase by Mark Ein is the biggest insider purchase of Custom Truck One Source shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$6.51. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Custom Truck One Source insiders decided to buy shares at close to current prices.
In the last twelve months Custom Truck One Source insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Custom Truck One Source 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 Custom Truck One Source
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Custom Truck One Source insiders own about US$57m worth of shares. That equates to 4.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Custom Truck One Source Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Custom Truck One Source shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Custom Truck One Source. At Simply Wall St, we found 1 warning sign for Custom Truck One Source that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.