Bullish insiders bet AU$4.6m on Vulcan Energy Resources Limited (ASX:VUL)

Over the last year, a good number of insiders have significantly increased their holdings in Vulcan Energy Resources Limited (ASX:VUL). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Vulcan Energy Resources

The Last 12 Months Of Insider Transactions At Vulcan Energy Resources

Over the last year, we can see that the biggest insider purchase was by insider John Hancock for AU$4.3m worth of shares, at about AU$0.84 per share. We do like to see buying, but this purchase was made at well below the current price of AU$13.51. 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.

Happily, we note that in the last year insiders paid AU$4.6m for 5.16m shares. But they sold 2.52m shares for AU$3.7m. In total, Vulcan Energy Resources insiders bought more than they sold over the last year. 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!

Vulcan Energy Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Vulcan Energy Resources Insiders Bought Stock Recently

Over the last quarter, Vulcan Energy Resources insiders have spent a meaningful amount on shares. We can see that Non-Executive Chairman Gavin Rezos paid AU$250k for shares in the company. No-one sold. That shows some optimism about the company's future.

Does Vulcan Energy Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Vulcan Energy Resources insiders own about AU$348m worth of shares (which is 21% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Vulcan Energy Resources Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Vulcan Energy Resources insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vulcan Energy Resources. When we did our research, we found 4 warning signs for Vulcan Energy Resources (2 don't sit too well with us!) that we believe deserve your full attention.

Of course Vulcan Energy Resources 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, but not derivative transactions.

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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.
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