Whilst it may not be a huge deal, we thought it was good to see that the Exterran Corporation (NYSE:EXTN) Lead Independent Director, William Goodyear, recently bought US$76k worth of stock, for US$3.78 per share. That purchase might not be huge but it did increase their holding by 14%.

See our latest analysis for Exterran

Exterran Insider Transactions Over The Last Year

Notably, that recent purchase by William Goodyear is the biggest insider purchase of Exterran shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.76). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. William Goodyear was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Exterran is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. From looking at our data, insiders own US$4.7m worth of Exterran stock, about 3.8% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Exterran Tell Us?

The recent insider purchase is 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Exterran stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Exterran. In terms of investment risks, we've identified 2 warning signs with Exterran and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

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