In This Article:
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Advantage Energy Ltd.'s (TSE:AAV) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Advantage Energy
Advantage Energy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director John Festival for CA$398k worth of shares, at about CA$9.95 per share. That means that an insider was happy to buy shares at above the current price of CA$9.00. 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$2.1m for 219.42k shares. But insiders sold 3.00k shares worth CA$32k. Overall, Advantage Energy insiders were net buyers 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!
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).
Insiders At Advantage Energy Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Advantage Energy. Overall, five insiders shelled out CA$969k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of Advantage Energy
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Advantage Energy insiders own 3.2% of the company, worth about CA$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Advantage Energy Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Advantage Energy shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Advantage Energy you should be aware of, and 1 of these makes us a bit uncomfortable.