Cadogan Energy Solutions PLC (LON:CAD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a UK£610k rise in the company’s market capitalisation, translating to a gain of 17% on their initial investment. In other words, the original US$54.1k purchase is now worth US$63.3k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Cadogan Energy Solutions
The Last 12 Months Of Insider Transactions At Cadogan Energy Solutions
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Fady Khallouf bought UK£41k worth of shares at a price of UK£0.02 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.023. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
Fady Khallouf bought a total of 2.75m shares over the year at an average price of UK£0.02. 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!
Cadogan Energy Solutions is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Cadogan Energy Solutions
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Cadogan Energy Solutions insiders own about UK£2.5m worth of shares (which is 45% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Cadogan Energy Solutions Insiders?
The fact that there have been no Cadogan Energy Solutions insider transactions recently certainly doesn’t bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Cadogan Energy Solutions insiders are reasonably well aligned (owning significant chunk of the company’s shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, Cadogan Energy Solutions has 2 warning signs (and 1 which shouldn’t be ignored) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.
