Last week, Vulcan Energy Resources Limited's (ASX:VUL) stock jumped 11%, but insiders who sold €479k worth of stock in over the past year are likely to be in a better position. Selling at an average price of €4.00, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Vulcan Energy Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Director, Cristobal Moreno, sold AU$479k worth of shares at a price of AU$4.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$1.15. So it may not tell us anything about how insiders feel about the current share price. Cristobal Moreno was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 50.78k shares worth AU$195k. But they sold 119.81k shares for AU$479k. 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!
See our latest analysis for Vulcan Energy Resources
I will like Vulcan Energy Resources better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insiders At Vulcan Energy Resources Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Vulcan Energy Resources. CEO, MD & Director Cristobal Moreno shelled out AU$20k for 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 Vulcan Energy Resources
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.0% of Vulcan Energy Resources shares, worth about AU$28m. 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 Do The Vulcan Energy Resources Insider Transactions Indicate?
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. Still, the insider transactions at Vulcan Energy Resources in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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. At Simply Wall St, we found 2 warning signs for Vulcan Energy Resources that deserve your attention before buying any shares.
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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