Solar Alliance Energy Inc. (CVE:SOLR) insiders got a good deal: Sold stock currently worth CA$0.21 at CA$0.28 over the past year

By
Simply Wall St
Published
October 15, 2021
TSXV:SOLR
Source: Shutterstock

Last week, Solar Alliance Energy Inc.'s (CVE:SOLR) stock jumped 16%, but insiders who sold CA$590k worth of stock in over the past year are likely to be in a better position. Selling at an average price of CA$0.28, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Solar Alliance Energy

Solar Alliance Energy Insider Transactions Over The Last Year

The Independent Director, Anton Shihoff, made the biggest insider sale in the last 12 months. That single transaction was for CA$274k worth of shares at a price of CA$0.55 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.21. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 186.00k shares worth CA$78k. But they sold 2.12m shares for CA$590k. Over the last year we saw more insider selling of Solar Alliance Energy shares, than buying. 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!

insider-trading-volume
TSXV:SOLR Insider Trading Volume October 15th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Solar Alliance Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Solar Alliance Energy insiders own 9.7% of the company, worth about CA$4.7m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Solar Alliance Energy Insiders?

The fact that there have been no Solar Alliance Energy insider transactions recently certainly doesn't bother us. Our analysis of Solar Alliance Energy insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 6 warning signs for Solar Alliance Energy (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.

Of course Solar Alliance 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, but not derivative transactions.

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.

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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.