Insider Buyers At Anfield Energy Likely Disappointed With 11% Slide
Insiders who bought CA$805.4k worth of Anfield Energy Inc.'s (CVE:AEC) stock at an average buy price of CA$6.38 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$556.9k, which is not great.
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 Anfield Energy
The Co-Founder Corey Dias made the biggest insider purchase in the last 12 months. That single transaction was for CA$278k worth of shares at a price of CA$6.19 each. That means that an insider was happy to buy shares at above the current price of CA$4.41. 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 always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months insiders purchased 126.28k shares for CA$805k. On the other hand they divested 500.00 shares, for CA$3.6k. In total, Anfield Energy insiders bought more than they sold over the last year. 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!
View our latest analysis for Anfield Energy
Anfield 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.
Anfield Energy Insiders Bought Stock Recently
It's good to see that Anfield Energy insiders have made notable investments in the company's shares. Specifically, Co-Founder & Director Joshua Bleak bought CA$76k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Anfield Energy Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Anfield Energy insiders own 3.7% of the company, worth about CA$3.5m. We prefer to see high levels of insider ownership.
So What Do The Anfield Energy Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Anfield Energy insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Anfield Energy has 4 warning signs (and 2 which are significant) we think 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.