We’d be surprised if Pembina Pipeline Corporation (TSE:PPL) shareholders haven’t noticed that the Vice President of Technical Services, Allan Charlesworth, recently sold CA$168k worth of stock at CA$31.38 per share. That sale was 38% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Pembina Pipeline
Over the last year, we can see that the biggest insider sale was by the President, Michael Dilger, for CA$826k worth of shares, at about CA$16.51 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of CA$28.17. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 20% of Michael Dilger’s stake. Notably Michael Dilger was also the biggest buyer, having purchased CA$3.0m worth of shares.
In the last twelve months insiders purchased 102.70k shares for CA$3.0m. But they sold 80.51k shares for CA$1.3m. In the last twelve months there was more buying than selling by Pembina Pipeline insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Pembina Pipeline is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Pembina Pipeline Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.1% of Pembina Pipeline shares, worth about CA$20m. 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 Pembina Pipeline Tell Us?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Pembina Pipeline we think they are probably pretty confident of a bright future. 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. To help with this, we’ve discovered 4 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Pembina Pipeline.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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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