IPB Petroleum Insider Ups Holding By 79% During Year

Looking at IPB Petroleum Limited's (ASX:IPB ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

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.

Check out our latest analysis for IPB Petroleum

The Last 12 Months Of Insider Transactions At IPB Petroleum

Over the last year, we can see that the biggest insider purchase was by insider Martin Rowney for AU$127k worth of shares, at about AU$0.008 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.007). 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. We always take careful note of the price insiders pay when purchasing shares. 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 Martin Rowney. Notably Martin Rowney was also the biggest seller.

Martin Rowney purchased 32.00m shares over the year. The average price per share was AU$0.0068. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of IPB Petroleum

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. IPB Petroleum insiders own 51% of the company, currently worth about AU$2.2m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At IPB Petroleum Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about IPB Petroleum. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IPB Petroleum. To that end, you should learn about the 5 warning signs we've spotted with IPB Petroleum (including 4 which are potentially serious).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.