In This Article:
Advantage Energy Ltd. (TSE:AAV) shareholders (or potential shareholders) will be happy to see that the Independent Director, Daniel Farb, recently bought a whopping CA$840k worth of stock, at a price of CA$8.50. That purchase boosted their holding by 71%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
We've discovered 2 warning signs about Advantage Energy. View them for free.
The Last 12 Months Of Insider Transactions At Advantage Energy
In fact, the recent purchase by Daniel Farb was the biggest purchase of Advantage Energy shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$9.77. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 468.34k shares for CA$4.1m. On the other hand they divested 3.00k shares, for CA$32k. In the last twelve months there was more buying than selling by Advantage Energy insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Advantage Energy
Advantage Energy is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Advantage Energy insiders own 3.6% of the company, worth about CA$56m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Advantage Energy Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Advantage Energy we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Advantage Energy. When we did our research, we found 2 warning signs for Advantage Energy (1 is potentially serious!) that we believe deserve your full attention.