Are Insiders Buying Jersey Oil and Gas Plc (LON:JOG) Stock?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Jersey Oil and Gas Plc (LON:JOG).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
View our latest analysis for Jersey Oil and Gas
Jersey Oil and Gas Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by COO & Executive Director Ronald Lansdell for UK£57k worth of shares, at about UK£1.13 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£1.46), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Jersey Oil and Gas insiders bought shares last year, they didn't sell. They paid about UK£0.99 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Jersey Oil and Gas is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Jersey Oil and Gas Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Jersey Oil and Gas insiders own 8.2% of the company, worth about UK£2.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Jersey Oil and Gas Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Jersey Oil and Gas insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Jersey Oil and Gas, you should check out this free report on analyst forecasts for the company.
Of course Jersey Oil and Gas may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
