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Viewing insider transactions for Genel Energy plc's (LON:GENL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Genel Energy
Genel Energy Insider Transactions Over The Last Year
The Independent Non-Executive Director Yetik Mert made the biggest insider purchase in the last 12 months. That single transaction was for UK£92k worth of shares at a price of UK£0.86 each. That means that even when the share price was higher than UK£0.76 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yetik Mert was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Does Genel Energy 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. Genel Energy insiders own about UK£53m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Genel Energy Insider Transactions Indicate?
The fact that there have been no Genel Energy insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Genel Energy and their transactions don't cause us concern. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Genel Energy.