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Whilst it may not be a huge deal, we thought it was good to see that Mavrodis Nestor, who is a company insider, recently bought AU$80k worth of stock, for AU$0.0011 per share. While that isn't the hugest buy, it actually boosted their shareholding by 65%, which is good to see.
The Last 12 Months Of Insider Transactions At Red Sky Energy
In fact, the recent purchase by insider Mavrodis Nestor was not their only acquisition of Red Sky Energy shares this year. They previously made an even bigger purchase of AU$277k worth of shares at a price of AU$0.003 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.002). 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. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Red Sky Energy insiders were buying shares, but not selling. They paid about AU$0.0021 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Red Sky Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 29% of Red Sky Energy shares, worth about AU$1.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Red Sky Energy Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Red Sky Energy insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 6 warning signs for Red Sky Energy (5 can't be ignored!) and we strongly recommend you look at these before investing.
Of course Red Sky 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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