Insider Buyers Lose Additional CA$31k As Coelacanth Energy Dips To CA$337m

The recent 12% drop in Coelacanth Energy Inc.'s (CVE:CEI) stock could come as a blow to insiders who purchased CA$160.4k worth of stock at an average buy price of CA$0.98 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$129.6k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Coelacanth Energy

The Last 12 Months Of Insider Transactions At Coelacanth Energy

The insider Thomas Claugus made the biggest insider purchase in the last 12 months. That single transaction was for CA$158k worth of shares at a price of CA$0.98 each. That means that an insider was happy to buy shares at above the current price of CA$0.79. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Thomas Claugus was the only individual insider to buy during the last year.

Thomas Claugus bought 164.10k shares over the last 12 months at an average price of CA$0.98. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Coelacanth Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Coelacanth Energy insiders own about CA$49m worth of shares. That equates to 15% 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.

So What Do The Coelacanth Energy Insider Transactions Indicate?

The fact that there have been no Coelacanth Energy insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Coelacanth Energy and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coelacanth Energy. At Simply Wall St, we've found that Coelacanth Energy has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

But note: Coelacanth Energy 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.