Potential Epsilon Energy Ltd. (NASDAQ:EPSN) shareholders may wish to note that the President, Jason Stabell, recently bought US$124k worth of stock, paying US$6.21 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.1%.
In fact, the recent purchase by President Jason Stabell was not their only acquisition of Epsilon Energy shares this year. Earlier in the year, they paid US$4.62 per share in a US$131k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.35. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
In the last twelve months Epsilon Energy insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Epsilon Energy
Epsilon Energy is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Epsilon Energy insiders own about US$13m worth of shares. That equates to 6.8% 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.
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Epsilon Energy we think they are probably pretty confident of a bright future. While it’s good to be aware of 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. To assist with this, we’ve discovered 3 warning signs that you should run your eye over to get a better picture of Epsilon Energy.
But note: Epsilon 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 of direct interests only, but not derivative transactions or indirect interests.
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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.