Insiders who bought Establishment Labs Holdings Inc. (NASDAQ:ESTA) stocks over the past 12 months were richly rewarded last week. The company’s market value increased by US$201 million due to the stock gaining 13% over the same period. As a result, the stock they originally bought for $4.5 million is now worth $4.7 million.
While we don’t think shareholders should simply follow insider trades, we think it makes perfect sense to keep an eye on what insiders are doing.
Check out our latest analysis for Establishment Labs Holdings
The last 12 months of insider trading at Establishment Labs Holdings
Independent director Edward Schutter has made the biggest insider buy in the past 12 months. This single transaction was for $2.3 million worth of shares at a price of $72.00 each. This means that even when the stock price was above US$71.87 (the recent price), an insider wanted to buy stock. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. We always take careful note of the price paid by insiders when buying stocks. Generally, we are more positive about a stock when an insider has bought the stock at prices above the current price, as this suggests that they view the stock as good value, even at a higher price. raised. The only individual insider to buy in the last year was Edward Schutter.
Edward Schutter purchased a total of 65,030 shares during the year at an average price of $69.21. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
There are many other companies whose insiders buy shares. You probably do do not want to miss this free list of growing companies insiders are buying.
Insider Ownership of Establishment Labs Holdings
Many investors like to check how much a company is owned by insiders. High insider participation often makes company management more concerned with the interests of shareholders. Establishment Labs Holdings insiders own 11% of the company, currently worth approximately US$195 million based on recent share price. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
So what does this data suggest about Establishment Labs Holdings insiders?
The fact that there have been no Establishment Labs Holdings insider trading recently certainly doesn’t bother us. On a more positive note, last year’s transactions are encouraging. Judging by their trading and strong insider participation, Establishment Labs Holdings insiders are happy with the company’s future. In addition to knowing the insider trading taking place, it is beneficial to identify the risks that Etablissement Labs Holdings faces. Example: we have identified 2 warning signs for the Labs Holdings Establishment you should be aware.
But note: Establishment Labs Holdings may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.