Rubellite Energy's Market Cap Up CA$23m Following Year Of Insider Stock Buying

Insiders who bought Rubellite Energy Corp. (TSE:RBY) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$23m as a result of the stock's 11% gain over the same period. In other words, the original CA$207.2k purchase is now worth CA$259.0k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

The Last 12 Months Of Insider Transactions At Rubellite Energy

The President Susan L. Rose made the biggest insider purchase in the last 12 months. That single transaction was for CA$110k worth of shares at a price of CA$2.20 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.49. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Rubellite Energy insiders were buying shares, but not selling. 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!

View our latest analysis for Rubellite Energy

Rubellite 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.

Insiders At Rubellite Energy Have Bought Stock Recently

Over the last quarter, Rubellite Energy insiders have spent a meaningful amount on shares. We can see that President Susan L. Rose paid CA$110k for shares in the company. No-one sold. This makes one think the business has some good points.

Does Rubellite Energy Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Rubellite Energy insiders own about CA$18m worth of shares. That equates to 8.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Rubellite Energy Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Rubellite Energy shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Rubellite Energy (2 don't sit too well with us!) and we strongly recommend you look at them before investing.

Of course Rubellite 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.

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.