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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Epsilon Energy Ltd.'s (NASDAQ:EPSN) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Epsilon Energy
In the last twelve months, the biggest single purchase by an insider was when President Jason Stabell bought US$374k worth of shares at a price of US$5.05 per share. Even though the purchase was made at a significantly lower price than the recent price (US$6.32), we still think insider buying is a positive. 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 Epsilon Energy insiders bought shares during the last year, they didn't sell. 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!
View our latest analysis for Epsilon 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).
Insider Ownership Of Epsilon Energy
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Epsilon Energy insiders own 5.3% of the company, worth about US$7.7m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Epsilon Energy Insiders?
The fact that there have been no Epsilon Energy insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Epsilon Energy insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Epsilon Energy you should be aware of, and 2 of them are potentially serious.