Stock Analysis

Insider Spends AU$500k Buying More Shares In Botala Energy

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ASX:BTE
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Potential Botala Energy Limited (ASX:BTE) shareholders may wish to note that the Executive Chairman, Wolf Martinick, recently bought AU$500k worth of stock, paying AU$0.09 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 15%.

Check out our latest analysis for Botala Energy

The Last 12 Months Of Insider Transactions At Botala Energy

In fact, the recent purchase by Wolf Martinick was the biggest purchase of Botala Energy shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.094 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Botala Energy insiders decided to buy shares at close to current prices.

In the last twelve months Botala Energy insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:BTE Insider Trading Volume December 2nd 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Botala Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Botala Energy insiders own 43% of the company, currently worth about AU$6.1m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Botala Energy Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Botala Energy. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Botala Energy (2 are a bit concerning!) that we believe deserve your full attention.

But note: Botala 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 of direct interests only, but not derivative transactions or indirect interests.

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