While not a huge purchase, we think it was good to see that Matthew Ocko, a Embark Technology, Inc. (NASDAQ:EMBK) insider, recently paid US$96,000 to buy shares, at US$9.64 per share. While not the biggest purchase, it actually increased their shareholding by 100%, which is good to see.
See our latest review for Embark Technology
Onboarding tech insider trades over the past year
Notably, this recent buy by Matthew Ocko is the biggest insider buy of Embark Technology stock we’ve seen in the last year. It is therefore clear that an insider wanted to buy, even at a price higher than the current price of the stock (ie US$8.88). Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. In our view, the price an insider pays for a stock is very important. 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. Matthew Ocko was the only individual insider to buy shares in the last twelve months.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Embark Technology isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. High insider participation often makes company management more concerned with the interests of shareholders. Insiders of Embark Technology own approximately $40 million in stock. This equals 20% of the business. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what does this data suggest on Embark Technology Insiders?
The recent insider buying is encouraging. And longer-term insider trading also gives us confidence. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. When combined with notable insider ownership, these factors suggest that Embark Technology insiders are well aligned and may believe the stock price is too low. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Every business has risks, and we’ve spotted 4 warning signs for Embark Technology (3 of which are significant!) that you should know.
But note: Embark Technology 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.
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