Galilee Energy Insiders Are Down AU$118k But Regain Some Losses

Insiders who purchased AU$135.3k worth of Galilee Energy Limited (ASX:GLL) shares over the past year recouped some of their losses after price gained 12% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$118k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Galilee Energy

Galilee Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Stephen Copulos for AU$135k worth of shares, at about AU$0.15 per share. That means that an insider was happy to buy shares at above the current price of AU$0.019. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Stephen Copulos.

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!

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

Insider Ownership Of Galilee Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Galilee Energy insiders own 6.9% of the company, worth about AU$445k. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Galilee Energy Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Galilee Energy insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Galilee Energy. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Galilee Energy.

But note: Galilee 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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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.