Despite Seascape Energy Asia's Pullback, Insiders Still Gained UK£52k

Insiders who bought Seascape Energy Asia plc (LON:SEA) in the last 12 months may probably not pay attention to the stock's recent 13% drop. After taking the recent loss into consideration, the UK£59.6k worth of stock they bought is now worth UK£111.2k, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Seascape Energy Asia

Over the last year, we can see that the biggest insider purchase was by Executive Chairman James Menzies for UK£60k worth of shares, at about UK£0.37 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.70), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Seascape Energy Asia

Seascape Energy Asia is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Seascape Energy Asia

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. From our data, it seems that Seascape Energy Asia insiders own 11% of the company, worth about UK£4.7m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Seascape Energy Asia Insiders?

The fact that there have been no Seascape Energy Asia insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Seascape Energy Asia stock. 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 (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Seascape Energy Asia.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.