Resources & Energy Group Insiders Still AU$262k Away From Original Investment Value
Some of the losses seen by insiders who purchased AU$505.6k worth of Resources & Energy Group Limited (ASX:REZ) shares over the past year were recovered after the stock increased by 10.0% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$262k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Resources & Energy Group
In the last twelve months, the biggest single purchase by an insider was when insider Carl Charalambous bought AU$271k worth of shares at a price of AU$0.051 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.011). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Carl Charalambous was the only individual insider to buy shares in the last twelve months. We note that Carl Charalambous was both the biggest buyer and the biggest seller.
Carl Charalambous purchased 22.11m shares over the year. The average price per share was AU$0.023. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Resources & Energy Group
Resources & Energy Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Resources & Energy Group insiders own about AU$3.3m worth of shares. That equates to 33% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Resources & Energy Group Insider Transactions Indicate?
The fact that there have been no Resources & Energy Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Resources & Energy Group and we see no evidence to suggest they are worried about the future. 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. At Simply Wall St, we've found that Resources & Energy Group has 6 warning signs (5 are potentially serious!) that deserve your attention before going any further with your analysis.
But note: Resources & Energy Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.