Insiders who bought Helios Energy Limited (ASX:HE8) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After accounting for the recent loss, the AU$300k worth of shares they purchased is now worth AU$880k, suggesting a good return on their investment.
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.
Check out our latest analysis for Helios Energy
Helios Energy Insider Transactions Over The Last Year
The Independent Non-Executive Director Robert Bearden made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.03 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.088. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Helios Energy
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 25% of Helios Energy shares, worth about AU$57m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Helios Energy Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Helios Energy and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Helios Energy you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.