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 Tlou Energy Limited (ASX:TOU), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Tlou Energy
The Last 12 Months Of Insider Transactions At Tlou Energy
Over the last year, we can see that the biggest insider purchase was by CEO, MD & Director Anthony Gilby for AU$228k worth of shares, at about AU$0.035 per share. That implies that an insider found the current price of AU$0.038 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Tlou Energy share holders is that insiders were buying at near the current price.
While Tlou Energy 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Tlou Energy 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Tlou Energy insiders own about AU$3.2m worth of shares (which is 10.0% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Tlou Energy Insider Transactions Indicate?
The fact that there have been no Tlou Energy insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Tlou Energy insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tlou Energy. For instance, we've identified 6 warning signs for Tlou Energy (3 don't sit too well with us) you should be aware of.