One Ncondezi Energy Limited (LON:NCCL) insider upped their stake by 7.4% in the previous year
Insiders were net buyers of Ncondezi Energy Limited's (LON:NCCL ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Ncondezi Energy
The Last 12 Months Of Insider Transactions At Ncondezi Energy
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Scott Fletcher for UK£56k worth of shares, at about UK£0.008 per share. That implies that an insider found the current price of UK£0.0088 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Ncondezi Energy insider decided to buy shares at close to current prices. Scott Fletcher was the only individual insider to buy during the last year.
Scott Fletcher bought a total of 15.01m shares over the year at an average price of UK£0.0084. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ncondezi Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Ncondezi Energy Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 31% of Ncondezi Energy shares, worth about UK£1.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Ncondezi Energy Insider Transactions Indicate?
The recent insider purchase is heartening. 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. Given that insiders also own a fair bit of Ncondezi Energy we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ncondezi Energy. Be aware that Ncondezi Energy is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant...
But note: Ncondezi Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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