Potential Electric Royalties Ltd. (CVE:ELEC) shareholders may wish to note that insider Stefan Gleason recently bought CA$276k worth of stock, paying CA$0.37 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.4%.

View our latest analysis for Electric Royalties

The Last 12 Months Of Insider Transactions At Electric Royalties

In fact, the recent purchase by insider Stefan Gleason was not their only acquisition of Electric Royalties shares this year. Earlier in the year, they paid CA$0.31 per share in a CA$341k purchase. That means that an insider was happy to buy shares at around the current price of CA$0.34. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Electric Royalties insiders decided to buy shares at close to current prices.

In the last twelve months Electric Royalties insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Electric Royalties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Electric Royalties insiders own 23% of the company, worth about CA$7.4m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Electric Royalties Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. 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 Electric Royalties 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. Our analysis shows 3 warning signs for Electric Royalties (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

Of course Electric Royalties may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.

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