Those following along with CECO Environmental Corp. (NASDAQ:CECO) will no doubt be intrigued by the recent purchase of shares by Richard Wallman, Independent Director of the company, who spent a stonking US$1.1m on stock at an average price of US$73.43. While that only increased their holding size by 5.0%, it is still a big swing by our standards.

The Last 12 Months Of Insider Transactions At CECO Environmental

The Independent Chairman of the Board, Jason DeZwirek, made the biggest insider sale in the last 12 months. That single transaction was for US$4.3m worth of shares at a price of US$43.79 each. That means that even when the share price was below the current price of US$74.30, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 6.5% of Jason DeZwirek's stake.

All up, insiders sold more shares in CECO Environmental than they bought, over the last year. The average sell price was around US$42.74. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of CECO Environmental

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CECO Environmental insiders own 7.4% of the company, currently worth about US$197m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The CECO Environmental Insider Transactions Indicate?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CECO Environmental.

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.