Insiders Buying Strategic Energy Resources Might Wish They Invested More, Stock Gains 17%

Insiders who bought Strategic Energy Resources Limited (ASX:SER) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$1.1m as a result of the stock's 17% gain over the same period. As a result, their original purchase of AU$624.9k worth of stock is now worth AU$875.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Strategic Energy Resources

The insider Graeme Kirke made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.005 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.007), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Strategic Energy Resources insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Strategic Energy Resources

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

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. It appears that Strategic Energy Resources insiders own 28% of the company, worth about AU$2.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Strategic Energy Resources Tell Us?

It doesn't really mean much that no insider has traded Strategic Energy Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Strategic Energy Resources and we see no evidence to suggest they are worried about the 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. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Strategic Energy Resources.

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.