Vanadian Energy Insider Buyers Pleased With CA$171k Return On Investment
Insiders who purchased Vanadian Energy Corp. (CVE:VEC.H) shares in the past 12 months are unlikely to be deeply impacted by the stock's 30% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of CA$783.8k is now worth CA$955.2k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Vanadian Energy
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Clive Johnson for CA$535k worth of shares, at about CA$0.16 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.20. 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.
While Vanadian Energy insiders bought shares during the last year, they didn't sell. 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!
Check out our latest analysis for Vanadian Energy
Vanadian Energy is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Vanadian Energy Boast High Insider Ownership?
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. Vanadian Energy insiders own 46% of the company, currently worth about CA$1.4m 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.
What Might The Insider Transactions At Vanadian Energy Tell Us?
The fact that there have been no Vanadian Energy insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Vanadian Energy insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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 assist with this, we've discovered 6 warning signs that you should run your eye over to get a better picture of Vanadian Energy.
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.