Insiders In Greenvale Energy Left Out From 19% Price Rise After Disposing Stock

Last week, Greenvale Energy Ltd's (ASX:GRV) stock jumped 19%, but insiders who sold AU$743k worth of stock in over the past year are likely to be in a better position. Selling at an average price of AU$0.064, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Greenvale Energy

Greenvale Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Neil Biddle, for AU$743k worth of shares, at about AU$0.067 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.037. So it may not tell us anything about how insiders feel about the current share price. Neil Biddle was the only individual insider to sell over the last year. Notably Neil Biddle was also the biggest buyer, having purchased AU$658k worth of shares.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Greenvale Energy Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Greenvale Energy. Specifically, Executive Chairman Neil Biddle bought AU$141k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Greenvale Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Greenvale Energy insiders own about AU$3.6m worth of shares. That equates to 20% 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 Greenvale Energy Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Greenvale Energy insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Greenvale Energy has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

But note: Greenvale 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.