Cauldron Energy Insider Buyers Net AU$94k Despite 18% Stock Decline

Insiders who bought Cauldron Energy Limited (ASX:CXU) in the last 12 months may probably not pay attention to the stock's recent 18% drop. After accounting for the recent loss, the AU$328.2k worth of shares they purchased is now worth AU$422.0k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Cauldron Energy

The Last 12 Months Of Insider Transactions At Cauldron Energy

Over the last year, we can see that the biggest insider purchase was by insider Mark Bahen for AU$328k worth of shares, at about AU$0.007 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.009. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Cauldron Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Cauldron Energy Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 29% of Cauldron Energy shares, worth about AU$2.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Cauldron Energy Insiders?

It doesn't really mean much that no insider has traded Cauldron Energy shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Cauldron Energy insiders are doubting the company, and they do own shares. 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. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Cauldron Energy.

Of course Cauldron 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 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.