Investors who take an interest in Australis Oil & Gas Limited (ASX:ATS) should definitely note that the Non-Executive Chairman, Jonathan Stewart, recently paid AU$0.08 per share to buy AU$200k worth of the stock. Although the purchase only increased their holding by 3.8%, it is still a solid purchase in our view.
Australis Oil & Gas Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Chairman Jonathan Stewart was not the only time they bought Australis Oil & Gas shares this year. They previously made an even bigger purchase of AU$1m worth of shares at a price of AU$0.35 per share. That means that an insider was happy to buy shares at above the current price of AU$0.083. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Australis Oil & Gas insiders were buying shares, but not selling. Their average price was about AU$0.23. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Australis Oil & Gas
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 12% of Australis Oil & Gas shares, worth about AU$10.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Australis Oil & Gas Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Australis Oil & Gas stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Australis Oil & Gas.
Of course Australis Oil & Gas 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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