Insiders who bought this year lost UK£35k as Invinity Energy Systems plc (LON:IES) sheds UK£24m in value

Insiders who bought UK£72k worth of Invinity Energy Systems plc's (LON:IES) stock at an average buy price of UK£1.74 over the last year may be disappointed by the recent 24% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£36k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Invinity Energy Systems

Invinity Energy Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Senior Independent Director Jonathan Marren for UK£54k worth of shares, at about UK£2.06 per share. That means that an insider was happy to buy shares at above the current price of UK£0.88. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Jonathan Marren was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 41.04k shares worth UK£72k. On the other hand they divested 26.04k shares, for UK£54k. In total, Invinity Energy Systems insiders bought more than they sold over the last year. The average buy price was around UK£1.74. 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders at Invinity Energy Systems Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Invinity Energy Systems. CEO & Director Lawrence Zulch shelled out UK£18k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Invinity Energy Systems Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Invinity Energy Systems shares, worth about UK£12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Invinity Energy Systems Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Invinity Energy Systems and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Invinity Energy Systems (2 are a bit unpleasant) you should be aware of.

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. 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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