Cadogan Energy Solutions Interim Chairman of the Board Acquires 122% More Stock

Those following along with Cadogan Energy Solutions PLC (LON:CAD) will no doubt be intrigued by the recent purchase of shares by Michel Francois Meeus, Interim Chairman of the Board of the company, who spent a stonking UK£622k on stock at an average price of UK£0.05. That increased their holding by a full 122%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Cadogan Energy Solutions

The Last 12 Months Of Insider Transactions At Cadogan Energy Solutions

In fact, the recent purchase by Michel Francois Meeus was the biggest purchase of Cadogan Energy Solutions shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£0.04 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Cadogan Energy Solutions insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£0.044. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Cadogan Energy Solutions is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Cadogan Energy Solutions Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cadogan Energy Solutions insiders own 45% of the company, currently worth about UK£4.3m based on the recent share price. 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?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Cadogan Energy Solutions insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Cadogan Energy Solutions (1 is concerning) you should be aware of.

Of course Cadogan Energy Solutions 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 of direct interests only, but not derivative transactions or indirect interests.

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