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In the last year, multiple insiders have substantially increased their holdings of Bengal Energy Ltd. (TSE:BNG) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
The Last 12 Months Of Insider Transactions At Bengal Energy
The Director William Wheeler made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.3m worth of shares at a price of CA$0.08 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.11. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 41.16m shares for CA$3.3m. On the other hand they divested 90.00k shares, for CA$11k. In the last twelve months there was more buying than selling by Bengal Energy insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Have Bengal Energy Insiders Traded Recently?
We saw Executive Vice President Richard Edgar buy shares worth CA$12k in the last three months. That's only a tiny bit more than the sales, worth CA$11k. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Bengal Energy Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Bengal Energy insiders own about CA$45m worth of shares (which is 85% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Bengal Energy Tell Us?
Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Bengal Energy insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for 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. In terms of investment risks, we've identified 3 warning signs with Bengal Energy and understanding these should be part of your investment process.
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.
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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.