Despite Great Western Exploration's Pullback, Insiders Still Gained AU$436k

Insiders who bought Great Western Exploration Limited (ASX:GTE) in the last 12 months may probably not pay attention to the stock's recent 12% drop. After accounting for the recent loss, the AU$670.0k worth of shares they purchased is now worth AU$1.11m, suggesting a good return on their investment.

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.

Check out our latest analysis for Great Western Exploration

Great Western Exploration Insider Transactions Over The Last Year

The Non-Executive Director Grey Egerton-Warburton made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.032 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.058. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Great Western Exploration 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Great Western Exploration is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Great Western Exploration insiders own about AU$5.2m worth of shares. That equates to 26% 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 Great Western Exploration Tell Us?

The fact that there have been no Great Western Exploration insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Great Western Exploration insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Great Western Exploration. Every company has risks, and we've spotted 5 warning signs for Great Western Exploration (of which 4 are significant!) you should know about.

But note: Great Western Exploration 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.

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

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.