Insider Buyers Lose Additional UK£20k As Longboat Energy Dips To UK£11m

Insiders who bought UK£76k worth of Longboat Energy plc's (LON:LBE) stock at an average buy price of UK£0.27 over the last year may be disappointed by the recent 18% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£57k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Longboat Energy

The Last 12 Months Of Insider Transactions At Longboat Energy

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Helge Hammer bought UK£64k worth of shares at a price of UK£0.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.20). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Longboat Energy insiders may have bought shares in the last year, but they didn't sell any. 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!

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.

Longboat Energy Insiders Bought Stock Recently

It's good to see that Longboat Energy insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£76k worth of shares. This makes one think the business has some good points.

Does Longboat Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Longboat Energy insiders own 13% of the company, worth about UK£1.5m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Longboat Energy Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Longboat Energy insiders are expecting a bright future. 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. When we did our research, we found 5 warning signs for Longboat Energy (1 shouldn't be ignored!) that we believe deserve your full attention.

But note: Longboat Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.