PowerHouse Energy Group Slides As Insider Purchases Lose Another UK£11k

The recent 11% drop in PowerHouse Energy Group Plc's (LON:PHE) stock could come as a blow to insiders who purchased UK£48.0k worth of stock at an average buy price of UK£0.0054 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth UK£36.7k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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PowerHouse Energy Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CFO & Director Ben Brier for UK£38k worth of shares, at about UK£0.0055 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.0042). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While PowerHouse Energy Group insiders bought shares during the last year, they didn't sell. 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!

View our latest analysis for PowerHouse Energy Group

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.

Does PowerHouse Energy Group Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that PowerHouse Energy Group insiders own about UK£2.0m worth of shares (which is 11% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The PowerHouse Energy Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think PowerHouse Energy Group insiders are doubting the company. 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. Our analysis shows 3 warning signs for PowerHouse Energy Group (2 are potentially serious!) and we strongly recommend you look at these before investing.

But note: PowerHouse Energy Group 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.