With Helios Energy Up 11%, Insider Buyers Count Their Returns

Insiders who bought Helios Energy Limited (ASX:HE8) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$6.4m as a result of the stock's 11% gain over the same period. As a result, their original purchase of AU$122.2k worth of stock is now worth AU$366.5k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Helios Energy

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Mark Lochtenberg bought AU$87k worth of shares at a price of AU$0.007 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.021. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Helios Energy insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Helios Energy

Helios Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Helios Energy Insiders Bought Stock Recently

Over the last quarter, Helios Energy insiders have spent a meaningful amount on shares. Overall, three insiders shelled out AU$122k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Helios Energy insiders own about AU$16m worth of shares. That equates to 24% 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.

What Might The Insider Transactions At Helios Energy Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Helios Energy shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of 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. For example, Helios Energy has 4 warning signs (and 2 which can't be ignored) we think you should know about.

Of course Helios 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.