Those following along with Chevron Corporation (NYSE:CVX) will no doubt be intrigued by the recent purchase of shares by Debra Reed-Klages, of the company, who spent a stonking US$502k on stock at an average price of US$118. That increased their holding by a full 149.3%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Check out our latest analysis for Chevron
The Last 12 Months Of Insider Transactions At Chevron
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Enrique Hernandez, sold US$513k worth of shares at a price of US$122 per share. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of US$122. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was only 21.3% of Enrique Hernandez’s holding. Enrique Hernandez was the only individual insider to sell over the last year.
Enrique Hernandez sold a total of 6300 shares over the year at an average price of US$122. You can see the insider transactions (by 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!
Insider Ownership of Chevron
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. It appears that Chevron insiders own 0.02% of the company, worth about US$48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Chevron Insiders?
The stark truth for Chevron is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. But it is good to see that Chevron is growing earnings. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Chevron.
Of course Chevron may not be the best stock to buy. So you may wish to see this free collection 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.