Those following along with Advantage Energy Ltd. (TSE:AAV) will no doubt be intrigued by the recent purchase of shares by Daniel Farb, Independent Director of the company, who spent a stonking CA$1.3m on stock at an average price of CA$10.43. That purchase boosted their holding by 53%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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The Last 12 Months Of Insider Transactions At Advantage Energy

Notably, that recent purchase by Daniel Farb is the biggest insider purchase of Advantage Energy shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$10.63. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Advantage Energy share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 527.43k shares for CA$4.8m. But insiders sold 4.50k shares worth CA$41k. Overall, Advantage Energy insiders were net buyers during the last year. Their average price was about CA$9.09. 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 the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Advantage Energy TSX:AAV Insider Trading Volume August 22nd 2025

Advantage Energy is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations,  this freelist of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Advantage Energy

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. Insiders own 3.1% of Advantage Energy shares, worth about CA$53m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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So What Does This Data Suggest About Advantage Energy Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Advantage Energy insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Advantage Energy.

Of course Advantage Energy may not be the best stock to buy. So you may wish to see this freecollection 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 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.

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