Yahoo Finance Multiple insiders bought Pilot Energy Limited (ASX:PGY) stock earlier this year, a positive sign for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Pilot Energy Limited (ASX:PGY), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Pilot Energy
The Last 12 Months Of Insider Transactions At Pilot Energy
In the last twelve months, the biggest single purchase by an insider was when insider Alexander Sundich bought AU$204k worth of shares at a price of AU$0.017 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.017. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Pilot Energy insiders decided to buy shares at close to current prices.
Pilot Energy insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.019. This is nice to see since it implies that insiders might see value around current prices. 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!
Pilot Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Pilot Energy Insiders Bought Stock Recently
Over the last quarter, Pilot Energy insiders have spent a meaningful amount on shares. Overall, three insiders shelled out AU$389k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Pilot Energy insiders own about AU$2.7m worth of shares. That equates to 26% 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 Pilot Energy Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Pilot Energy we think they are probably pretty confident of 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 instance, we've identified 5 warning signs for Pilot Energy (2 are a bit unpleasant) you should be aware of.
But note: Pilot 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.
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