Simon Irish Spends US$51k On Terrestrial Energy Stock

Even if it's not a huge purchase, we think it was good to see that Simon Irish, the CEO & Director of Terrestrial Energy Inc. (NASDAQ:IMSR) recently shelled out US$51k to buy stock, at US$3.01 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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Terrestrial Energy Insider Transactions Over The Last Year

In fact, the recent purchase by Simon Irish was the biggest purchase of Terrestrial Energy shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$3.22 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Terrestrial Energy insiders decided to buy shares at close to current prices.

In the last twelve months Terrestrial Energy insiders were buying shares, but not selling. 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!

Check out our latest analysis for Terrestrial Energy

Terrestrial 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.

Insider Ownership Of Terrestrial Energy

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Terrestrial Energy insiders own 41% of the company, currently worth about US$139m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Terrestrial Energy Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Terrestrial Energy. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Terrestrial Energy. For example, Terrestrial Energy has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.