Envoy Medical, Inc. (NASDAQ:COCH) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 22% resulting in a US$11m addition to the company’s market value. In other words, the original US$8.17m purchase is now worth US$16.2m.

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.

Envoy Medical Insider Transactions Over The Last Year

The insider Glen Taylor made the biggest insider purchase in the last 12 months. That single transaction was for US$7.5m worth of shares at a price of US$0.40 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.79. 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.

While Envoy Medical insiders bought shares during the last year, they didn't sell. 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 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 Of Envoy Medical

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. Envoy Medical insiders own about US$20m worth of shares. That equates to 37% 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 Envoy Medical Tell Us?

The fact that there have been no Envoy Medical insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. 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.

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 of direct interests only, but not derivative transactions or indirect interests.

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.