Trade Alert: Independent Non-Executive Director Of Energy One Ian Ferrier Has Sold Stock

Some Energy One Limited (ASX:EOL) shareholders may be a little concerned to see that the Independent Non-Executive Director, Ian Ferrier, recently sold a substantial AU$28m worth of stock at a price of AU$14.20 per share. That's a big disposal, and it decreased their holding size by 44%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Energy One

Notably, that recent sale by Ian Ferrier is the biggest insider sale of Energy One shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$14.17. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Energy One insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Energy One

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 28% of Energy One shares, worth about AU$126m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Energy One Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Energy One is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Energy One. While conducting our analysis, we found that Energy One has 1 warning sign and it would be unwise to ignore this.

But note: Energy One 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.

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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.