How Much Of Electric Royalties Ltd.'s Shares Are Held By Insiders?

Electric Royalties Ltd.'s (CVE:ELEC) stock price has dropped 13% in the previous week, so let's take a look at the ownership levels in the company.

See our latest analysis for Electric Royalties

The Last 12 Months Of Insider Transactions At Electric Royalties

To the untrained eye, it would seem the Director, Stefan Gleason, made the biggest insider sale in the last 12 months. However, this is not the case, as the shares 'sold' under Mr. Gleason's name were actually a transfer between accounts owned by him. So not a single share was sold, to the rejoice of shareholders. Notably, Stefan Gleason was also the biggest buyer, having purchased CA$349k worth of shares.

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!

I will like Electric Royalties better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Electric Royalties Have Bought Stock Recently

We saw some Electric Royalties insider buying shares in the last three months. Director Stefan Gleason bought CA$124k worth of shares in that time. But Chief Financial Officer Luqman Khan sold CA$65k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Does Electric Royalties Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Electric Royalties insiders own roughly 50% of the company, worth about CA$11.3m. This could be considered an outstanding level of insider ownership, indicating a high level of alignment between management and smaller shareholders.

So What Does This Data Suggest About Electric Royalties Insiders?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Electric Royalties insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. 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. To help with this, we've discovered 5 warning signs (3 are significant!) that you ought to be aware of before buying any shares in Electric Royalties.

Of course Electric Royalties may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

This article has been amended following information being provided to Simply Wall St by Stefan Gleason with respect to his holdings.

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.