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Even if it's not a huge purchase, we think it was good to see that Andrew Benedek, the Executive Director of Anaergia Inc. (TSE:ANRG) recently shelled out CA$110k to buy stock, at CA$0.55 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Anaergia
The Last 12 Months Of Insider Transactions At Anaergia
Over the last year, we can see that the biggest insider purchase was by Independent Director Ronen Kantor for CA$980k worth of shares, at about CA$0.40 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.58), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Anaergia insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Anaergia is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Anaergia Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Anaergia insiders own about CA$26m 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.
What Might The Insider Transactions At Anaergia Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Anaergia we think they are probably pretty confident of a bright future. 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. For example, Anaergia has 5 warning signs (and 4 which shouldn't be ignored) we think you should know about.
But note: Anaergia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.