Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of PowerHouse Energy Group Plc( LON:PHE ), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At PowerHouse Energy Group
The CFO & Director Ben Brier made the biggest insider purchase in the last 12 months. That single transaction was for UK£38k worth of shares at a price of UK£0.0055 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.0043). 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. To us, it's very important to consider the price insiders pay for shares. 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.
While PowerHouse Energy Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for PowerHouse Energy Group
PowerHouse Energy Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations,this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that PowerHouse Energy Group insiders own about UK£2.1m worth of shares (which is 11% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At PowerHouse Energy Group Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if PowerHouse Energy Group insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PowerHouse Energy Group. Every company has risks, and we've spotted 3 warning signs for PowerHouse Energy Group (of which 2 are significant!) you should know about.
But note: PowerHouse Energy Group 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
