- Oil and Gas
Insider Buyers At Armour Energy Recover Some Losses, But Still Down AU$99k
Insiders who bought AU$327k worth of Armour Energy Limited (ASX:AJQ) stock in the last year have seen some of their losses recouped as the stock gained 17% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at AU$99k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Armour Energy
Armour Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Peter Aslan bought AU$327k worth of shares at a price of AU$0.01 per share. That means that an insider was happy to buy shares at above the current price of AU$0.007. 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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Peter Aslan was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Armour 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 Of Armour Energy
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. Armour Energy insiders own about AU$3.0m worth of shares. That equates to 19% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Armour Energy Insiders?
It doesn't really mean much that no insider has traded Armour Energy shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Armour Energy and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Armour Energy has 5 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis.
But note: Armour 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.
Armour Energy Limited, together with its subsidiaries, focuses on the discovery, development, and production of natural oil and gas, and associated liquid resources in Australia.
Slightly overvalued with worrying balance sheet.