electroCore Founder & Independent Director Acquires 7.0% More Stock
Thomas Errico, Founder & Independent Director of electroCore, Inc. (NASDAQ:ECOR), recently purchased US$67k worth of stock at US$4.47 per share, increasing his holdings by 7.0%. This was the largest insider purchase in the past year, although it occurred below the current price of US$5.24. Despite insider buying, the company is facing losses, but insiders own 26% of the company, indicating some alignment with shareholders. Investors should be aware of the risks associated with electroCore, including four identified warning signs.
Even if it's not a huge purchase, we think it was good to see that Thomas Errico, the Founder & Independent Director of electroCore, Inc. (NASDAQ:ECOR) recently shelled out US$67k to buy stock, at US$4.47 per share. However, it only increased their shares held by 7.0%, and it wasn't a huge purchase by absolute value, either.
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The Last 12 Months Of Insider Transactions At electroCore
In fact, the recent purchase by Thomas Errico was the biggest purchase of electroCore shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$5.24. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While electroCore insiders bought shares during the last year, they didn't sell. They paid about US$5.32 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for electroCore
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. electroCore insiders own about US$10.0m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At electroCore Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest electroCore insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 4 warning signs with electroCore and understanding them should be part of your investment process.
Of course electroCore 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 of direct interests only, but not derivative transactions or indirect interests.
