Bullish Cadogan Energy Solutions Insider Buying Worth US$681.7k Yet To Pay Off

Insiders who bought US$681.7k worth of Cadogan Energy Solutions PLC's (LON:CAD) stock at an average buy price of US$0.049 over the last year may be disappointed by the recent 18% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$522.5k, which is not great.

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.

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The Last 12 Months Of Insider Transactions At Cadogan Energy Solutions

In the last twelve months, the biggest single purchase by an insider was when Interim Chairman of the Board Michel Francois Meeus bought UK£622k worth of shares at a price of UK£0.05 per share. That means that an insider was happy to buy shares at above the current price of UK£0.037. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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. The only individual insider to buy over the last year was Michel Francois Meeus.

Michel Francois Meeus bought a total of 13.93m shares over the year at an average price of UK£0.049. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Cadogan Energy Solutions

Cadogan Energy Solutions 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 Cadogan Energy Solutions

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cadogan Energy Solutions insiders own 49% of the company, worth about UK£4.6m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Cadogan Energy Solutions Tell Us?

The fact that there have been no Cadogan Energy Solutions insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Cadogan Energy Solutions insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cadogan Energy Solutions. To help with this, we've discovered 4 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Cadogan Energy Solutions.

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.