Whilst it may not be a huge deal, we thought it was good to see that David Elliott, who is a company insider, recently bought CA$123k worth of stock, for CA$0.70 per share. However, it only increased their shares held by 5.3%, and it wasn’t a huge purchase by absolute value, either.
View our latest analysis for Reconnaissance Energy Africa ” data-reactid=”29″ type=”text”> View our latest analysis for Reconnaissance Energy Africa
The Last 12 Months Of Insider Transactions At Reconnaissance Energy Africa
Notably, that recent purchase by David Elliott is the biggest insider purchase of Reconnaissance Energy Africa shares that we’ve seen in the last year. That means that even when the share price was higher than CA$0.59 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 406.77k shares for CA$256k. On the other hand they divested 390.50k shares, for CA$245k. In total, Reconnaissance Energy Africa insiders bought more than they sold over the last year. They paid about CA$0.63 on average. I’d consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
list of growing companies that insiders are buying.” data-reactid=”49″ type=”text”>There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Reconnaissance Energy Africa 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Reconnaissance Energy Africa insiders own about CA$5.9m worth of shares (which is 9.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Reconnaissance Energy Africa Insider Transactions Indicate?
4 warning signs for Reconnaissance Energy Africa (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.” data-reactid=”53″ type=”text”>It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Reconnaissance Energy Africa insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Reconnaissance Energy Africa. Our analysis shows 4 warning signs for Reconnaissance Energy Africa (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.
collection of high quality companies.” data-reactid=”54″ type=”text”>Of course Reconnaissance Energy Africa may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
This article by Simply Wall St is general in nature. 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.