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Insider Buying: The Energy One Limited (ASX:EOL) Non-Independent Director Just Bought 5.8% More Shares

Simply Wall St

Energy One Limited (ASX:EOL) shareholders (or potential shareholders) will be happy to see that the Non-Independent Director, Ian Ferrier, recently bought a whopping AU$871k worth of stock, at a price of AU$2.18. While that only increased their holding size by 5.8%, it is still a big swing by our standards.

See our latest analysis for Energy One

The Last 12 Months Of Insider Transactions At Energy One

Notably, that recent purchase by Ian Ferrier is the biggest insider purchase of Energy One shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$3.70), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Energy One insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:EOL Recent Insider Trading June 4th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Energy One Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Energy One insiders own about AU$56m worth of shares (which is 63% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Energy One Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Energy One. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Energy One. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Energy One.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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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. 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. Thank you for reading.