Investors who take an interest in Epsilon Energy Ltd. (NASDAQ:EPSN) should definitely note that the President, Jason Stabell, recently paid US$5.61 per share to buy US$148k worth of the stock. Although the purchase only increased their holding by 3.7%, it is still a solid purchase in our view.

The Last 12 Months Of Insider Transactions At Epsilon Energy

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$5.34 per share in a US$265k purchase. That means that an insider was happy to buy shares at around the current price of US$5.84. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Epsilon Energy share holders is that insiders were buying at near the current price.

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!

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.

Insider Ownership Of Epsilon Energy

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Epsilon Energy insiders own 4.2% of the company, worth about US$7.4m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Epsilon Energy Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Epsilon Energy insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Epsilon Energy.

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.

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.