Investors who take an interest in Eagle Bulk Shipping Inc. (NASDAQ:EGLE) should definitely note that the CEO & Director, Gary Vogel, recently paid US$17.79 per share to buy US$160k worth of the stock. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.1%.
The Last 12 Months Of Insider Transactions At Eagle Bulk Shipping
In fact, the recent purchase by Gary Vogel was the biggest purchase of Eagle Bulk Shipping shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is US$23.27. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Gary Vogel.
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!
Eagle Bulk Shipping is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Eagle Bulk Shipping
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. Our data indicates that Eagle Bulk Shipping insiders own about US$5.8m worth of shares (which is 2.3% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Eagle Bulk Shipping Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Eagle Bulk Shipping insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Eagle Bulk Shipping. Every company has risks, and we’ve spotted 2 warning signs for Eagle Bulk Shipping you should know about.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.