Potential CECO Environmental Corp. (NASDAQ:CECO) shareholders may wish to note that the Independent Director, Richard Wallman, recently bought US$110k worth of stock, paying US$21.95 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.1%.

View our latest analysis for CECO Environmental

CECO Environmental Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Richard Wallman was not the only time they bought CECO Environmental shares this year. They previously made an even bigger purchase of US$989k worth of shares at a price of US$19.78 per share. Even though the purchase was made at a significantly lower price than the recent price (US$22.45), 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.

Over the last year, we can see that insiders have bought 79.50k shares worth US$1.5m. On the other hand they divested 14.50k shares, for US$306k. In the last twelve months there was more buying than selling by CECO Environmental insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insider Ownership Of CECO Environmental

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 9.5% of CECO Environmental shares, worth about US$74m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CECO Environmental Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CECO Environmental 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of CECO Environmental.

But note: CECO Environmental may not be the best stock to buy. So take a peek 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 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.

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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.