Insider Spends UK£910k Buying More Shares In AFC Energy

Those following along with AFC Energy plc (LON:AFC) will no doubt be intrigued by the recent purchase of shares by Gary Bullard, Non-Executive Chairman of the company, who spent a stonking UK£910k on stock at an average price of UK£9.10. While that only increased their holding size by 1.8%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At AFC Energy

Notably, that recent purchase by Gary Bullard is the biggest insider purchase of AFC Energy shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£0.097. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

AFC Energy insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£0.24. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Check out our latest analysis for AFC Energy

AFC Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of AFC Energy

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own UK£1.2m worth of AFC Energy stock, about 1.1% of the company. I generally like to see higher levels of ownership.

So What Do The AFC Energy Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on AFC Energy stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AFC Energy. Be aware that AFC Energy is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

Of course AFC 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.