Yahoo Finance Non-Executive Director Scott Fletcher Just Bought 16% More Shares In Ncondezi Energy Limited (LON:NCCL)
Potential Ncondezi Energy Limited (LON:NCCL) shareholders may wish to note that the Non-Executive Director, Scott Fletcher, recently bought UK£350k worth of stock, paying UK£0.035 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.
See our latest analysis for Ncondezi Energy
Ncondezi Energy Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Executive Director Scott Fletcher was not their only acquisition of Ncondezi Energy shares this year. They previously made an even bigger purchase of UK£8.3m worth of shares at a price of UK£4.08 per share. That means that an insider was happy to buy shares at above the current price of UK£0.041. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. Scott Fletcher was the only individual insider to buy during the last year.
Scott Fletcher bought a total of 14.75m shares over the year at an average price of UK£0.60. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
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. It appears that Ncondezi Energy insiders own 25% of the company, worth about UK£3.6m. 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 Does This Data Suggest About Ncondezi Energy Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Ncondezi Energy shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Ncondezi Energy.
But note: Ncondezi Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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