Whilst it may not be a huge deal, we thought it was good to see that the GrafTech International Ltd. (NYSE:EAF) CEO, President & Director, Timothy Flanagan, recently bought US$54k worth of stock, for US$1.07 per share. Even though that isn't a massive buy, it did increase their holding by 212%, which is arguably a good sign.

View our latest analysis for GrafTech International

GrafTech International Insider Transactions Over The Last Year

Notably, that recent purchase by Timothy Flanagan is the biggest insider purchase of GrafTech International shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$1.14. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

While GrafTech International 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!NYSE:EAF Insider Trading Volume February 15th 2025

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 freelist of companies. (Hint: insiders have been buying them).

Does GrafTech International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.5% of GrafTech International shares, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The GrafTech International Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in GrafTech International shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of 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. For example, GrafTech International has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Story Continues

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist 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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

View Comments