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The Exploration Director & Executive Director of Sound Energy plc (LON:SOU), Brian Mitchener, Just Bought 3870% More Shares

Potential Sound Energy plc (LON:SOU) shareholders may wish to note that the Exploration Director & Executive Director, Brian Mitchener, recently bought UK£108k worth of stock, paying UK£0.019 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 3870%.

See our latest analysis for Sound Energy

The Last 12 Months Of Insider Transactions At Sound Energy

Notably, that recent purchase by Brian Mitchener is the biggest insider purchase of Sound Energy shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£0.018. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Sound Energy insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£0.023. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AIM:SOU Recent Insider Trading, January 29th 2020
AIM:SOU Recent Insider Trading, January 29th 2020

Sound Energy is not the only stock that insiders are buying. 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

Many investors like to check how much of a company is owned by 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. Our data suggests Sound Energy insiders own 1.8% of the company, worth about UK£374k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Sound Energy Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Sound Energy insiders are reasonably well aligned, and optimistic for the future. Along with insider transactions, I recommend checking if Sound Energy is growing revenue. This free chart of historic revenue and earnings should make that easy.

But note: Sound 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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