Active Energy Group Insider Confidence Rewarded, Stock Hits UK£8.3m Market Cap \

Last week, Active Energy Group Plc (LON:AEG) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 17% last week, resulting in a UK£1.2m increase in the company's market worth. Put another way, the original US$46k acquisition is now worth US$57k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Active Energy Group

Active Energy Group Insider Transactions Over The Last Year

The CEO & Director Thomas Michael Rowan made the biggest insider purchase in the last 12 months. That single transaction was for UK£41k worth of shares at a price of UK£0.042 each. Even though the purchase was made at a significantly lower price than the recent price (UK£0.051), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Active Energy Group insiders bought shares during the last year, they didn't sell. 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!

Active Energy Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Active Energy Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Active Energy Group insiders own about UK£1.6m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Active Energy Group Tell Us?

It doesn't really mean much that no insider has traded Active Energy Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Active Energy Group and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Active Energy Group (of which 1 is potentially serious!) you should know about.

Of course Active Energy Group 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.

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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.