Yahoo Finance The Independent Non-Executive Director of Beach Energy Limited (ASX:BPT), Robert Jager, Just Bought A Few More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Beach Energy Limited (ASX:BPT) Independent Non-Executive Director, Robert Jager, recently bought AU$119k worth of stock, for AU$1.70 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Beach Energy
Beach Energy Insider Transactions Over The Last Year
The Alternate Director Ryan Stokes made the biggest insider purchase in the last 12 months. That single transaction was for AU$175k worth of shares at a price of AU$1.17 each. Even though the purchase was made at a significantly lower price than the recent price (AU$1.70), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Beach Energy insiders were buying shares, but not selling. The average buy price was around AU$1.29. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
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
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 1.5% of Beach Energy shares, worth about AU$59m. 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 Do The Beach Energy Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Beach Energy insiders are well aligned, and that they may think the share price is too low. 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, 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, but not derivative transactions.
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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.
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