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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of GURU Organic Energy Corp. (TSE:GURU), that sends out a positive message to the company's shareholders.
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 GURU Organic Energy
The Last 12 Months Of Insider Transactions At GURU Organic Energy
Over the last year, we can see that the biggest insider purchase was by Independent Chair of the Board Eric Graveline for CA$97k worth of shares, at about CA$2.48 per share. That means that an insider was happy to buy shares at above the current price of CA$1.96. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.
GURU Organic Energy insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$1.96 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
GURU Organic 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.
GURU Organic Energy Insiders Bought Stock Recently
Over the last quarter, GURU Organic Energy insiders have spent a meaningful amount on shares. Overall, three insiders shelled out CA$163k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of GURU Organic Energy
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. GURU Organic Energy insiders own about CA$32m worth of shares (which is 54% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.