Pleasing Signs As A Number Of Insiders Buy Eneco Energy Stock \

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Eneco Energy Limited (SGX:R14), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Eneco Energy

The Last 12 Months Of Insider Transactions At Eneco Energy

Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer Chee Kiang Gwee for S$110k worth of shares, at about S$0.011 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$0.013. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Eneco Energy insiders may have bought shares in the last year, but they didn't sell any. 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Eneco Energy insiders own about S$6.0m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Eneco Energy Tell Us?

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 do have a stake in Eneco Energy and their transactions don't cause us concern. 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. At Simply Wall St, we've found that Eneco Energy has 5 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

But note: Eneco 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.

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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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