Insider Spends US$104k Buying More Shares In 374Water

Potential 374Water Inc. (NASDAQ:SCWO) shareholders may wish to note that the Interim President, Stephen Jones, recently bought US$104k worth of stock, paying US$0.23 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 74%.

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374Water Insider Transactions Over The Last Year

The insider, Yaacov Nagar, made the biggest insider sale in the last 12 months. That single transaction was for US$696k worth of shares at a price of US$0.46 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$0.24. So it is hard to draw any strong conclusion from it. Yaacov Nagar was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$249k for 927.89k shares. But insiders sold 5.01m shares worth US$2.4m. Yaacov Nagar ditched 5.01m shares over the year. The average price per share was US$0.47. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for 374Water

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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. We usually like to see fairly high levels of insider ownership. 374Water insiders own about US$17m worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About 374Water Insiders?

The stark truth for 374Water is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 6 warning signs for 374Water you should be aware of, and 2 of these can't be ignored.

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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.