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Insiders who purchased US$250.0k worth of Verde Clean Fuels, Inc. (NASDAQ:VGAS) shares over the past year recouped some of their losses after price gained 27% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$150k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Verde Clean Fuels
Verde Clean Fuels Insider Transactions Over The Last Year
The Independent Director Martijn Dekker made the biggest insider purchase in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$10.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.00). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Martijn Dekker.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Verde Clean Fuels is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Verde Clean Fuels 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Verde Clean Fuels insiders have about 1.5% of the stock, worth approximately US$1.9m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Verde Clean Fuels Insiders?
The fact that there have been no Verde Clean Fuels insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Verde Clean Fuels 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. For example - Verde Clean Fuels has 2 warning signs we think you should be aware of.