Chief Operating Officer of Geo Energy Resources Picks Up 86% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Geo Energy Resources Limited (SGX:RE4) Chief Operating Officer, Philip Hendry, recently bought S$120k worth of stock, for S$0.24 per share. While that isn't the hugest buy, it actually boosted their shareholding by 86%, which is good to see.

See our latest analysis for Geo Energy Resources

Geo Energy Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Chief Operating Officer Philip Hendry was not their only acquisition of Geo Energy Resources shares this year. Earlier in the year, they paid S$0.30 per share in a S$174k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.27). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Geo Energy Resources insiders may have bought shares in the last year, but they didn't sell any. 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!

Geo Energy Resources 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 Geo Energy Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 33% of Geo Energy Resources shares, worth about S$124m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Geo Energy Resources Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Geo Energy Resources. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Geo Energy Resources. To that end, you should learn about the 2 warning signs we've spotted with Geo Energy Resources (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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.