Even if it's not a huge purchase, we think it was good to see that Lloyd Rochford, a Ring Energy, Inc. (NYSEMKT:REI) insider, recently shelled out US$100k to buy stock, at US$0.70 per share. However, it only increased their shares held by 8.5%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Ring Energy
Over the last year, we can see that the biggest insider purchase was by insider Simon Kukes for US$1.5m worth of shares, at about US$2.03 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.47). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Simon Kukes was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid US$2.3m for 1.36m shares. But insiders sold 66.30k shares worth US$170k. In total, Ring Energy insiders bought more than they sold over the last year. They paid about US$1.67 on average. These transactions suggest that insiders have considered the current price attractive. 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!
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 of Ring Energy
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Ring Energy insiders own 15% of the company, worth about US$6.7m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Ring Energy Insider Transactions Indicate?
The recent insider purchases are heartening. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ring Energy stock. 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. Every company has risks, and we've spotted 3 warning signs for Ring Energy you should know about.
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.
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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