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Whilst it may not be a huge deal, we thought it was good to see that the Savannah Energy Plc (LON:SAVE) Non-Executive Director, David Clarkson, recently bought UK£70k worth of stock, for UK£0.092 per share. Even though that isn't a massive buy, it did increase their holding by 212%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At Savannah Energy
Notably, that recent purchase by David Clarkson is the biggest insider purchase of Savannah Energy shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£0.097. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Savannah Energy share holders is that an insider was buying at near the current price. David Clarkson was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership of Savannah Energy
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. Our data suggests Savannah Energy insiders own 2.8% of the company, worth about UK£2.7m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Do The Savannah Energy Insider Transactions Indicate?
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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Savannah Energy insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Savannah Energy. For example, Savannah Energy has 3 warning signs (and 1 which is concerning) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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