Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Vulcan Energy Resources Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Vulcan Energy Resources Limited's (ASX:VUL) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Vulcan Energy Resources
Vulcan Energy Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Deputy Chairman of the Board Gavin Rezos for AU$135k worth of shares, at about AU$3.67 per share. That means that even when the share price was higher than AU$3.03 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Vulcan Energy Resources insiders bought shares during the last year, they didn't sell. Their average price was about AU$3.28. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Vulcan Energy Resources Insiders Bought Stock Recently
There was some insider buying at Vulcan Energy Resources over the last quarter. Independent Non-Executive Director Josephine Bush bought AU$29k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 26% of Vulcan Energy Resources shares, worth about AU$133m. 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 Vulcan Energy Resources Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Vulcan Energy Resources insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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. Be aware that Vulcan Energy Resources is showing 3 warning signs in our investment analysis, and 1 of those is concerning...
Of course Vulcan Energy Resources 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
