Executive Chairman & MD of 3D Energi Picks Up 3.9% More Stock
Potential 3D Energi Limited (ASX:TDO) shareholders may wish to note that the Executive Chairman & MD, Noel Newell, recently bought AU$200k worth of stock, paying AU$0.11 for each share. Although the purchase only increased their holding by 3.9%, it is still a solid purchase in our view.
3D Energi Insider Transactions Over The Last Year
Notably, that recent purchase by Noel Newell is the biggest insider purchase of 3D Energi shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.15), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Noel Newell purchased 3.84m shares over the year. The average price per share was AU$0.11. 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!
Check out our latest analysis for 3D Energi
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. 3D Energi insiders own about AU$14m worth of shares. That equates to 21% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The 3D Energi Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in 3D Energi shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 3D Energi. Every company has risks, and we've spotted 4 warning signs for 3D Energi (of which 1 is a bit unpleasant!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.