Insiders who bought ENRG Elements Limited (ASX:EEL) stock lover the last 12 months are probably not as affected by last week’s 50% loss. After taking the recent loss into consideration, the AU$90.0k worth of stock they bought is now worth AU$119.6k, indicating that their investment yielded a positive return.

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.

View our latest analysis for ENRG Elements

The Last 12 Months Of Insider Transactions At ENRG Elements

Notably, that recent purchase by Michael Soucik is the biggest insider purchase of ENRG Elements shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.0015. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

ENRG Elements insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.0011 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ENRG Elements is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

ENRG Elements Insiders Bought Stock Recently

It's good to see that ENRG Elements insiders have made notable investments in the company's shares. We can see that insider Michael Soucik paid AU$78k for shares in the company. No-one sold. This makes one think the business has some good points.

Does ENRG Elements Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 24% of ENRG Elements shares, worth about AU$368k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At ENRG Elements Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest ENRG Elements insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we've found that ENRG Elements has 5 warning signs (4 make us uncomfortable!) that deserve your attention before going any further with your analysis.

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 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.