The Chief Executive Officer of Genesis Energy Limited (NZSE:GNE), Marc England, Just Sold 32% Of Their Holding

We'd be surprised if Genesis Energy Limited (NZSE:GNE) shareholders haven't noticed that the Chief Executive Officer, Marc England, recently sold NZ$567k worth of stock at NZ$3.78 per share. That sale was 32% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Genesis Energy

Genesis Energy Insider Transactions Over The Last Year

Notably, that recent sale by Marc England is the biggest insider sale of Genesis Energy shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of NZ$3.84. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 32% of Marc England's holding.

Happily, we note that in the last year insiders paid NZ$117k for 40.19k shares. On the other hand they divested 190.00k shares, for NZ$709k. In total, Genesis Energy insiders sold more than they bought over the last year. 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!

I will like Genesis Energy better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Genesis Energy

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Genesis Energy insiders own about NZ$25m worth of shares. That equates to 0.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Genesis Energy Tell Us?

The stark truth for Genesis Energy is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Genesis Energy makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Genesis Energy. To that end, you should learn about the 3 warning signs we've spotted with Genesis Energy (including 1 which is potentially serious).

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, but not derivative transactions.

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