Amplify Energy Up 14%, Insider Buyers Are Up 19%

Last week, Amplify Energy Corp. (NYSE:AMPY) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a US$22m increase in the company's market worth, implying a 19% gain on their initial purchase. Put another way, the original US$833.0k acquisition is now worth US$995.0k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Amplify Energy

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Christopher Hamm for US$283k worth of shares, at about US$3.67 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.38. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 227.18k shares for US$833k. But they sold 5.50k shares for US$20k. Overall, Amplify Energy insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Amplify Energy

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

Amplify Energy Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Amplify Energy. In total, two insiders bought US$551k worth of shares in that time. On the other hand, VP & Chief Accounting Officer Eric Dulany netted US$20k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Amplify Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Amplify Energy insiders own 3.8% of the company, worth about US$6.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Amplify Energy Insider Transactions Indicate?

The recent insider purchases are heartening. 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 Amplify Energy stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amplify Energy. For instance, we've identified 3 warning signs for Amplify Energy (1 is a bit unpleasant) you should be aware of.

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.

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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.