Bullish Calfrac Well Services Insiders Rewarded As Their Investment Rises To CA$995.6k

Calfrac Well Services Ltd. (TSE:CFW) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a CA$36m addition to the company’s market value. As a result, their original purchase of CA$893.7k worth of stock is now worth CA$995.6k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Calfrac Well Services

The Last 12 Months Of Insider Transactions At Calfrac Well Services

In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Independent Vice Chairman Douglas Ramsay bought CA$245k worth of shares at a price of CA$4.10 per share. That implies that an insider found the current price of CA$4.46 per share to be enticing. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid CA$894k for 223.23k shares. But they sold 17.30k shares for CA$72k. In total, Calfrac Well Services insiders bought more than they sold over the last year. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Calfrac Well Services 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Calfrac Well Services insiders own about CA$44m worth of shares. That equates to 12% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Calfrac Well Services Insiders?

The fact that there have been no Calfrac Well Services insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Calfrac Well Services insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Calfrac Well Services. Our analysis shows 3 warning signs for Calfrac Well Services (1 can't be ignored!) and we strongly recommend you look at these before investing.

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 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.