Yahoo Finance Insider Buying: The Equitrans Midstream Corporation (NYSE:ETRN) Chairman & CEO Just Bought 6.0% More Shares
Investors who take an interest in Equitrans Midstream Corporation (NYSE:ETRN) should definitely note that the Chairman & CEO, Thomas Karam, recently paid US$7.97 per share to buy US$359k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.0%.
Check out our latest analysis for Equitrans Midstream
Equitrans Midstream Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Thomas Karam was not their only acquisition of Equitrans Midstream shares this year. They previously made an even bigger purchase of US$1.6m worth of shares at a price of US$16.39 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.87). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
While Equitrans Midstream insiders bought shares during the last year, they didn't sell. They paid about US$12.01 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by 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!
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.
Does Equitrans Midstream Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Equitrans Midstream insiders own 0.5% of the company, worth about US$9.6m. We do generally prefer see higher levels of insider ownership.
So What Do The Equitrans Midstream Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Equitrans Midstream insiders are reasonably well aligned, and optimistic for the future. 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. For example, Equitrans Midstream has 3 warning signs (and 1 which is concerning) we think you should know about.
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.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
This article by Simply Wall St is general in nature. 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. Thank you for reading.
