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Insiders who bought AU$402.9k worth of Vintage Energy Limited (ASX:VEN) stock in the last year have seen some of their losses recouped as the stock gained 17% last week. However, total losses seen by insiders are still AU$121k since the time of purchase.
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.
View our latest analysis for Vintage Energy
The Last 12 Months Of Insider Transactions At Vintage Energy
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Reginald Nelson for AU$141k worth of shares, at about AU$0.01 per share. That means that even when the share price was higher than AU$0.007 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Vintage Energy insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insider Ownership Of Vintage Energy
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.1% of Vintage Energy shares, worth about AU$945k, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Vintage Energy Insiders?
The fact that there have been no Vintage Energy insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Vintage Energy stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in Vintage Energy.