Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of AFC Energy plc (LON:AFC), it sends a favourable message to the company’s shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
In fact, the recent purchase by Non-Executive Chairman Gary Bullard was not their only acquisition of AFC Energy shares this year. They previously made an even bigger purchase of UK£63k worth of shares at a price of UK£0.067 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.097), 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.
AFC Energy insiders may have bought shares in the last year, but they didn’t sell any. The average buy price was around UK£0.082. 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. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for AFC Energy
AIM:AFC Insider Trading Volume August 23rd 2025
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Over the last quarter, AFC Energy insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£87k worth of shares. This could be interpreted as suggesting a positive outlook.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests AFC Energy insiders own 1.2% of the company, worth about UK£1.3m. I generally like to see higher levels of ownership.
Story Continues
It’s certainly positive to see the recent insider purchases. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that AFC Energy insiders are expecting a bright future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing AFC Energy. To help with this, we’ve discovered 4 warning signs (3 are a bit unpleasant!) that you ought to be aware of before buying any shares in AFC Energy.
But note: AFC Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.