Insiders' AU$798.2k Investments In Red Following Resources & Energy Group's AU$1.5m Dip In Market Value

Insiders who bought AU$798.2k worth of Resources & Energy Group Limited's (ASX:REZ) stock at an average buy price of AU$0.022 over the last year may be disappointed by the recent 13% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$471.1k, which is not what they expected.

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.

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Resources & Energy Group Insider Transactions Over The Last Year

The insider Carl Charalambous made the biggest insider purchase in the last 12 months. That single transaction was for AU$271k worth of shares at a price of AU$0.051 each. That means that even when the share price was higher than AU$0.013 (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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Carl Charalambous was the only individual insider to buy during the last year. We note that Carl Charalambous was both the biggest buyer and the biggest seller.

Carl Charalambous bought 36.24m shares over the last 12 months at an average price of AU$0.022. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Resources & Energy Group

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Resources & Energy Group Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Resources & Energy Group shares. In total, insider Carl Charalambous dumped AU$303k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 38% of Resources & Energy Group shares, worth about AU$3.8m. 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 Resources & Energy Group Insider Transactions Indicate?

An insider hasn't bought Resources & Energy Group stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Resources & Energy Group. At Simply Wall St, we've found that Resources & Energy Group has 5 warning signs (3 are significant!) that deserve your attention before going any further with your analysis.

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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.