With Aero Energy Up 42%, Insider Buyers Count Their Returns

Insiders who bought Aero Energy Limited (CVE:AERO) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$8.0m as a result of the stock's 42% gain over the same period. In other words, the original CA$135.0k purchase is now worth CA$429.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Aero Energy

The Last 12 Months Of Insider Transactions At Aero Energy

Over the last year, we can see that the biggest insider purchase was by CEO & Chairman of the Board Galen McNamara for CA$85k worth of shares, at about CA$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Galen McNamara bought 1.95m shares over the last 12 months at an average price of CA$0.069. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Aero Energy insiders own 4.0% of the company, worth about CA$414k. We consider this fairly low insider ownership.

What Might The Insider Transactions At Aero Energy Tell Us?

It doesn't really mean much that no insider has traded Aero Energy shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Aero Energy insiders bought more shares in the company. 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. At Simply Wall St, we found 5 warning signs for Aero Energy that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.