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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Geo Energy Resources Limited's (SGX:RE4) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Geo Energy Resources
The Last 12 Months Of Insider Transactions At Geo Energy Resources
The Chief Operating Officer Philip Hendry made the biggest insider purchase in the last 12 months. That single transaction was for S$174k worth of shares at a price of S$0.30 each. That means that even when the share price was higher than S$0.29 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Geo Energy Resources insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Geo Energy Resources Have Bought Stock Recently
We saw some Geo Energy Resources insider buying shares in the last three months. Lead Independent Director Kin Pung Yan purchased S$37k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Geo Energy Resources 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. It's great to see that Geo Energy Resources insiders own 33% of the company, worth about S$136m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.