Even if it’s not a big buy, we think it was good to see Matthew Ocko, a embark technology, inc. (NASDAQ:EMBK), recently shelled out US$96k to buy shares, at US$9.64 per share. While that’s not the biggest purchase, he actually increased his shareholding by 100%, which is nice to see.
See our latest review of Embark technology
Embark Technology Insider transactions over the past year
Notably, the recent purchase of Matthew Ocko is the largest insider purchase of Embark Technology stock that we have seen in the past year. So it’s clear that someone with inside information wanted to buy, even at a price higher than the current stock price ($8.88). While their opinion of him may have changed since the purchase was made, this at least suggests that they had confidence in the company’s future. From our point of view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares above current prices, because that suggests they viewed the stock as a good value, even at a higher price. Matthew Ocko was the only individual informant who bought shares in the last twelve months.
You can see a visual representation of internal transactions (by companies and individuals) for the last 12 months, below. By clicking on the chart below, you can see the precise details of each internal transaction!
Embark Technology is not the only stock that experts buy. so take a look at this free list of growing companies with internal purchases.
For a common shareholder, it is worth checking how many shares are held by insiders of the company. High internal ownership often makes company leadership more conscious of shareholder interests. Embark Technology experts hold shares worth approximately $40 million. That is equivalent to 20% of the company. This level of internal ownership is good, but it falls short of being particularly prominent. It certainly suggests a reasonable degree of alignment.
So what does this data suggest about Embark’s techies?
Recent insider buying is encouraging. And longer-term internal transactions also give us confidence. But on the other hand, the company posted losses over the last year, which makes us a bit cautious. When combined with notable insider ownership, these factors suggest that Embark Technology members are well aligned and may think the share price is too low. So these internal transactions can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. All companies have risks, and we have detected 4 Warning Signs for Embark Technology (of which 3 are significant!) that you should know about.
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 those individuals who report their operations to the corresponding regulatory body. We currently account for open market transactions and private disposals, but not derivative transactions.
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This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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