President of Epsilon Energy Picks Up 16% More Stock

Investors who take an interest in Epsilon Energy Ltd. (NASDAQ:EPSN) should definitely note that the President, Jason Stabell, recently paid US$5.05 per share to buy US$374k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.

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$5.50. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Jason Stabell purchased 807.64k shares over the year. The average price per share was US$4.97. 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!

Epsilon Energy 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 Epsilon Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$4.8m worth of Epsilon Energy stock, about 4.3% of the company. 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. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Epsilon Energy insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Epsilon Energy has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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.