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From what we can see, insiders were net buyers in IPB Petroleum Limited's (ASX:IPB ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for IPB Petroleum
The Last 12 Months Of Insider Transactions At IPB Petroleum
In the last twelve months, the biggest single purchase by an insider was when insider Martin Rowney bought AU$127k worth of shares at a price of AU$0.008 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.007). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. Martin Rowney was the only individual insider to buy during the last year. We note that Martin Rowney was both the biggest buyer and the biggest seller.
Martin Rowney bought 32.00m shares over the last 12 months at an average price of AU$0.0068. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
IPB Petroleum is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that IPB Petroleum insiders own 51% of the company, worth about AU$2.5m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At IPB Petroleum Tell Us?
It doesn't really mean much that no insider has traded IPB Petroleum shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like IPB Petroleum insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IPB Petroleum. To help with this, we've discovered 5 warning signs (4 shouldn't be ignored!) that you ought to be aware of before buying any shares in IPB Petroleum.