Whilst it may not be a huge deal, we thought it was good to see that the Equitrans Midstream Corporation (NYSE:ETRN) Independent Director, Margaret Dorman, recently bought US$86k worth of stock, for US$12.25 per share. Even though that isn’t a massive buy, it did increase their holding by 54%, which is a arguably a good sign.
Equitrans Midstream Insider Transactions Over The Last Year
Chairman & CEO Thomas Karam made the biggest insider purchase in the last 12 months. That single transaction was for US$5.1m worth of shares at a price of US$20.52 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$12.30). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$9.2m for 500442 shares. On the other hand they divested 4866 shares, for US$100k. Overall, Equitrans Midstream insiders were net buyers 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!
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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Equitrans Midstream insiders own 0.5% of the company, worth about US$16m. 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 Equitrans Midstream Insiders?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Equitrans Midstream insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Equitrans Midstream.
Of course Equitrans Midstream may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.