Anthony Smith Is The Non-Executive Director of Energy Technologies Limited (ASX:EGY) And They Just Picked Up 126% More Shares

Potential Energy Technologies Limited (ASX:EGY) shareholders may wish to note that the Non-Executive Director, Anthony Smith, recently bought AU$524k worth of stock, paying AU$0.08 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 126%.

View our latest analysis for Energy Technologies

Energy Technologies Insider Transactions Over The Last Year

Notably, that recent purchase by Anthony Smith is the biggest insider purchase of Energy Technologies shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.09. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Energy Technologies insiders decided to buy shares at close to current prices.

In the last twelve months Energy Technologies insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Does Energy Technologies Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Energy Technologies insiders own about AU$4.0m worth of shares. That equates to 26% of the company. 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 Energy Technologies Insider Transactions Indicate?

It is good to see recent purchasing. 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. When combined with notable insider ownership, these factors suggest Energy Technologies insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Energy Technologies has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Of course Energy Technologies 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.

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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. 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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