Insider Traders Lose US$56k As Envoy Medical Drops

The recent price decline of 41% in Envoy Medical, Inc.'s (NASDAQ:COCH) stock may have disappointed insiders who bought US$106.4k worth of shares at an average price of US$1.64 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$50.7k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

The Last 12 Months Of Insider Transactions At Envoy Medical

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Charles Brynelsen for US$82k worth of shares, at about US$1.68 per share. That means that an insider was happy to buy shares at above the current price of US$0.78. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Envoy Medical insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Envoy Medical

Envoy Medical is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Envoy Medical

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Envoy Medical insiders own 38% of the company, worth about US$6.9m. 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 Do The Envoy Medical Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Envoy Medical shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Envoy Medical and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Envoy Medical. For example, Envoy Medical has 5 warning signs (and 2 which are potentially serious) we think you should know about.

Of course Envoy Medical 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.