The Independent Director of GURU Organic Energy Corp. (TSE:GURU), Eric Graveline, Just Bought A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the GURU Organic Energy Corp. (TSE:GURU) Independent Director, Eric Graveline, recently bought CA$61k worth of stock, for CA$3.03 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for GURU Organic Energy

The Last 12 Months Of Insider Transactions At GURU Organic Energy

In fact, the recent purchase by Independent Director Eric Graveline was not their only acquisition of GURU Organic Energy shares this year. They previously made an even bigger purchase of CA$207k worth of shares at a price of CA$5.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.75). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid CA$1.1m for 189.80k shares. But they sold 29.00k shares for CA$341k. In the last twelve months there was more buying than selling by GURU Organic Energy insiders. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of GURU Organic Energy

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. GURU Organic Energy insiders own about CA$44m worth of shares (which is 50% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About GURU Organic Energy Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about GURU Organic Energy. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for GURU Organic Energy that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.