Independent Non Executive Director of Southern Energy Reginald Smith Buys 48% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Southern Energy Corp. (CVE:SOU) Independent Non Executive Director, Reginald Smith, recently bought CA$75k worth of stock, for CA$0.26 per share. That purchase might not be huge but it did increase their holding by 48%.

See our latest analysis for Southern Energy

Southern Energy Insider Transactions Over The Last Year

In fact, the recent purchase by Reginald Smith was the biggest purchase of Southern Energy shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$0.27. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Southern Energy share holders is that insiders were buying at near the current price.

Southern Energy insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Southern Energy

For a common shareholder, it is worth checking how many shares are held by company 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. Our data indicates that Southern Energy insiders own about CA$3.2m worth of shares (which is 7.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Southern Energy Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Southern Energy insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Southern Energy is showing 4 warning signs in our investment analysis, and 1 of those is significant...

Of course Southern 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.

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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.