Yahoo Finance Insiders saw their €4.0m investment bump up to €7.1m after Po Valley Energy Limited (ASX:PVE) soared 56% last week
Insiders who bought Po Valley Energy Limited (ASX:PVE) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$19m as a result of the stock's 56% gain over the same period. As a result, the stock they originally bought for €4.0m is now worth €7.1m.
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.
View our latest analysis for Po Valley Energy
Po Valley Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman Kevin Bailey bought AU$2.4m worth of shares at a price of AU$0.028 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.05. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Po Valley Energy insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Po Valley Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Po Valley Energy Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Po Valley Energy insiders own 63% of the company, worth about AU$34m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Po Valley Energy Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Po Valley Energy insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Po Valley Energy (of which 3 are potentially serious!) you should know about.
But note: Po Valley Energy 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, 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.
