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Have Insiders Been Buying Invictus Energy Limited (ASX:IVZ) Shares This Year?

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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Invictus Energy Limited (ASX:IVZ).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

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We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

Check out our latest analysis for Invictus Energy

The Last 12 Months Of Insider Transactions At Invictus Energy

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Barnaby Egerton-Warburton for AU$95k worth of shares, at about AU$0.04 per share. That means that an insider was happy to buy shares at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price. Notably Barnaby Egerton-Warburton was also the biggest seller, having sold AU$95k worth of shares.

In the last twelve months insiders purchased 11.82m shares for AU$416k. On the other hand they divested 2.38m shares, for AU$95k. In the last twelve months there was more buying than selling by Invictus Energy insiders. The average buy price was around AU$0.035. Although they bought at below the recent price of AU$0.043 per share, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:IVZ Insider Trading February 6th 19
ASX:IVZ Insider Trading February 6th 19

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Invictus Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Invictus Energy insiders own about AU$4.8m worth of shares. That equates to 30% 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 Does This Data Suggest About Invictus Energy Insiders?

The fact that there have been no Invictus Energy insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Invictus Energy and their transactions don’t cause us concern. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.