Insider Returns Down To AU$149k As Elixir Energy's Stock Dips 13%

Elixir Energy Limited (ASX:EXR) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. Even after accounting for the recent loss, the AU$182.4k worth of stock purchased by them is now worth AU$330.9k or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Elixir Energy

The CEO, MD & Director Stuart Nicholls made the biggest insider purchase in the last 12 months. That single transaction was for AU$101k worth of shares at a price of AU$0.029 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.059. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Elixir Energy insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.033. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Elixir Energy

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Elixir Energy Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Elixir Energy. CEO, MD & Director Stuart Nicholls bought AU$50k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Insider Ownership Of Elixir 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. From our data, it seems that Elixir Energy insiders own 8.5% of the company, worth about AU$8.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Elixir Energy Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Elixir Energy stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Elixir Energy. To that end, you should learn about the 4 warning signs we've spotted with Elixir Energy (including 3 which shouldn't be ignored).

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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.