Epsilon Energy President Acquires 6.1% More Stock

Investors who take an interest in Epsilon Energy Ltd. (NASDAQ:EPSN) should definitely note that the President, Jason Stabell, recently paid US$5.36 per share to buy US$139k worth of the stock. Although the purchase only increased their holding by 6.1%, it is still a solid purchase in our view.

See our latest analysis for Epsilon Energy

Epsilon Energy Insider Transactions Over The Last Year

In fact, the recent purchase by President Jason Stabell was not their only acquisition of Epsilon Energy shares this year. Earlier in the year, they paid US$4.82 per share in a US$1.2m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$5.43. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Jason Stabell bought a total of 681.97k shares over the year at an average price of US$4.95. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Epsilon Energy

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Epsilon Energy insiders have about 3.8% of the stock, worth approximately US$4.6m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Epsilon Energy Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Epsilon Energy stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Epsilon Energy (including 2 which are potentially serious).

But note: Epsilon Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.