Insiders were net buyers of IPB Petroleum Limited's (ASX:IPB ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for IPB Petroleum
IPB Petroleum Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Sihol Gultom for AU$157k worth of shares, at about AU$0.01 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.009). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Sihol Gultom was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
IPB Petroleum is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does IPB Petroleum Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that IPB Petroleum insiders own 36% of the company, worth about AU$1.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About IPB Petroleum Insiders?
It doesn't really mean much that no insider has traded IPB Petroleum shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think IPB Petroleum insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that IPB Petroleum has 4 warning signs and it would be unwise to ignore them.