Even if it's not a huge purchase, we think it was good to see that Marty Proctor, the President of Seven Generations Energy Ltd. (TSE:VII) recently shelled out CA$96k to buy stock, at CA$3.20 per share. Although the purchase is not a big one, increasing their shareholding by only 8.5%, it can be interpreted as a good sign.
Seven Generations Energy Insider Transactions Over The Last Year
The Independent Director Harvey Doerr made the biggest insider purchase in the last 12 months. That single transaction was for CA$108k worth of shares at a price of CA$1.80 each. We do like to see buying, but this purchase was made at well below the current price of CA$3.48. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 158.40k shares worth CA$391k. But insiders sold 3436 shares worth CA$10k. Overall, Seven Generations Energy insiders were net buyers during the last year. The average buy price was around CA$2.47. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by 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!
Seven Generations 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 of Seven Generations Energy
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Seven Generations Energy insiders have about 0.4% of the stock, worth approximately CA$4.2m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Seven Generations Energy Tell Us?
It's certainly positive to see the recent insider purchases. 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 Seven Generations Energy insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Seven Generations Energy (1 is a bit concerning) you should be aware of.
Of course Seven Generations Energy 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, 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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