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As Beach Energy Limited (ASX:BPT) gains 3.1%, insiders who bought last year may be wishing they had bet higher

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Beach Energy Limited (ASX:BPT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 3.1% resulting in a AU$114m addition to the company’s market value. Put another way, the original AU$326k acquisition is now worth AU$459k.

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.

Check out our latest analysis for Beach Energy

The Last 12 Months Of Insider Transactions At Beach Energy

In the last twelve months, the biggest single purchase by an insider was when Alternate Director Ryan Stokes bought AU$175k worth of shares at a price of AU$1.17 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.68. 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.

While Beach 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Beach Energy

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Beach Energy insiders own about AU$48m worth of shares. That equates to 1.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Beach Energy Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Beach Energy and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Beach Energy, you should check out this free report on analyst forecasts for the company.

Of course Beach Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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.

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