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Quite a few insiders invested in A-Cap Energy Limited (ASX:ACB) last year which is positive news for shareholders

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of A-Cap Energy Limited (ASX:ACB), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for A-Cap Energy

A-Cap Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Michael Liu bought AU$528k worth of shares at a price of AU$0.071 per share. That means that an insider was happy to buy shares at above the current price of AU$0.07. 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. We always take careful note of the price insiders pay when purchasing 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. We note that Michael Liu was both the biggest buyer and the biggest seller.

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In the last twelve months insiders purchased 7.97m shares for AU$565k. But insiders sold 350.00k shares worth AU$53k. In the last twelve months there was more buying than selling by A-Cap Energy insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

A-Cap 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$2.6m worth of A-Cap Energy stock, about 3.0% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Do The A-Cap Energy Insider Transactions Indicate?

The fact that there have been no A-Cap Energy insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more A-Cap Energy stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing A-Cap Energy. For instance, we've identified 4 warning signs for A-Cap Energy (2 shouldn't be ignored) you should be aware of.

Of course A-Cap 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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