Bullish Ecovyst Inc. (NYSE:ECVT) insiders filled their treasuries with US$1.3m worth of stock over last year

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Ecovyst Inc. (NYSE:ECVT), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Ecovyst

The Last 12 Months Of Insider Transactions At Ecovyst

In the last twelve months, the biggest single purchase by an insider was when Independent Director Jonny Ginns bought US$498k worth of shares at a price of US$9.46 per share. Even though the purchase was made at a significantly lower price than the recent price (US$10.61), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Ecovyst insiders were buying shares, but not selling. You can see the insider transactions (by companies and 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.

Insiders at Ecovyst Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Ecovyst. Not only was there no selling that we can see, but they collectively bought US$788k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Ecovyst Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.3% of Ecovyst shares, worth about US$48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Ecovyst Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Ecovyst insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Ecovyst has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.