With Winchester Energy Up 50%, Insider Buyers Count Their Returns
Winchester Energy Limited (ASX:WEL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 50%, resulting in a AU$857k rise in the company's market capitalisation, translating to a gain of 50% on their initial investment. In other words, the original US$99.9k purchase is now worth US$150.0k.
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.
The Last 12 Months Of Insider Transactions At Winchester Energy
In the last twelve months, the biggest single purchase by an insider was when insider Jason Peterson bought AU$100k worth of shares at a price of AU$0.001 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.0015. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Winchester Energy
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 Winchester Energy
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Winchester Energy insiders own 36% of the company, worth about AU$935k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Winchester Energy Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Winchester Energy insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Winchester Energy (including 3 which are a bit unpleasant).
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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