Insiders Sold Greenvale Energy At AU$0.081, Meanwhile Stock Sits Near AU$0.028

Greenvale Energy Ltd's (ASX:GRV) stock price has dropped 15% in the previous week, but insiders who sold AU$218k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.081 is still below the current share price.

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.

See our latest analysis for Greenvale Energy

The Last 12 Months Of Insider Transactions At Greenvale Energy

Over the last year, we can see that the biggest insider sale was by the insider, Anthony Leibowitz, for AU$218k worth of shares, at about AU$0.11 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.028). So it is hard to draw any strong conclusion from it. Anthony Leibowitz was the only individual insider to sell shares in the last twelve months. Notably Anthony Leibowitz was also the biggest buyer, having purchased AU$17k worth of shares.

In the last twelve months insiders purchased 335.45k shares for AU$17k. On the other hand they divested 2.69m shares, for AU$218k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Greenvale Energy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Are Greenvale Energy Insiders Buying Or Selling?

Non-Executive Chairperson Neil Biddle bought just AU$6.8k worth of shares in that time. That's not much at all. Overall, we don't think these recent trades are particularly informative, one way or the other.

Does Greenvale 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. We usually like to see fairly high levels of insider ownership. Greenvale Energy insiders own about AU$2.4m 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 Greenvale Energy Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Still, the insider transactions at Greenvale Energy in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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. Be aware that Greenvale Energy is showing 5 warning signs in our investment analysis, and 4 of those make us uncomfortable...

Of course Greenvale 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com