Scott Fletcher Just Bought 6.3% More Shares In Ncondezi Energy Limited (LON:NCCL)

Ncondezi Energy Limited (LON:NCCL) shareholders (or potential shareholders) will be happy to see that insider Scott Fletcher recently bought a whopping UK£8.3m worth of stock, at a price of UK£3.77. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.3%.

Check out our latest analysis for Ncondezi Energy

The Last 12 Months Of Insider Transactions At Ncondezi Energy

Notably, that recent purchase by Scott Fletcher is the biggest insider purchase of Ncondezi 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£0.049. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Scott Fletcher was the only individual insider to buy shares in the last twelve months.

Scott Fletcher purchased 3.82m shares over the year. The average price per share was UK£2.20. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Ncondezi Energy insiders own 19% of the company, worth about UK£3.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Ncondezi Energy Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Ncondezi Energy shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Ncondezi Energy.

But note: Ncondezi 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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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