Envirometal Technologies Inc. (EVLLF)

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Did EnviroLeach Technologies Inc. (CSE:ETI) Insiders Sell Shares?

January 6, 2020
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in EnviroLeach Technologies Inc. (CSE:ETI).

What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.

The Last 12 Months Of Insider Transactions At EnviroLeach Technologies
The President, Duane Nelson, made the biggest insider sale in the last 12 months. That single transaction was for CA$90k worth of shares at a price of CA$0.90 each. That means that an insider was selling shares at slightly below the current price (CA$1.32). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. We note that the biggest single sale was only 19% of Duane Nelson’s holding. Notably Duane Nelson was also the biggest buyer, having purchased CA$43k worth of shares.

All up, insiders sold more shares in EnviroLeach Technologies than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!



f you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Have EnviroLeach Technologies Insiders Traded Recently?
There was some insider buying at EnviroLeach Technologies over the last quarter. President Duane Nelson shelled out CA$6.9k for shares in that time. It’s great to see that insiders are only buying, not selling. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.

Insider Ownership of EnviroLeach Technologies
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 6.2% of EnviroLeach Technologies shares, worth about CA$5.7m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At EnviroLeach Technologies Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don’t take much encouragement from the transactions by EnviroLeach Technologies insiders. And usually insiders own more stock in the company, according to our data. Along with insider transactions, I recommend checking if EnviroLeach Technologies is growing revenue. This free chart of historic revenue and earnings should make that easy.

https://simplywall.st/stocks/ca/materials/cse-eti/enviroleach-technologies-shares/news/did-enviroleach-technologies-inc-cseeti-insiders-sell-shares/