Have Cimarex Energy Co. (NYSE:XEC) Insiders Been Selling Their Stock?

We’d be surprised if Cimarex Energy Co. (NYSE:XEC) shareholders haven’t noticed that the Executive Vice President of Business Development, Stephen Bell, recently sold US$351k worth of stock at US$28.09 per share. On the bright side, that sale was only 7.7% of their holding, so we doubt it’s very meaningful, on its own.

Check out our latest analysis for Cimarex Energy

The Last 12 Months Of Insider Transactions At Cimarex Energy

Notably, that recent sale by Executive Vice President of Business Development Stephen Bell was not the only time they sold Cimarex Energy shares this year. They previously made an even bigger sale of -US$422.3k worth of shares at a price of US$46.58 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$28.28. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$604k for 34.97k shares. But they sold 26.78k shares for US$1.0m. Over the last year we saw more insider selling of Cimarex Energy shares, than buying. 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!

insider-trading-volume
NYSE:XEC Insider Trading Volume August 28th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Cimarex Energy insiders own 2.2% of the company, worth about US$62m. 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 Cimarex Energy Insiders?

An insider hasn’t bought Cimarex Energy stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. While insiders do own shares, they don’t own a heap, and they have been selling. So we’d only buy after careful consideration. 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. At Simply Wall St, we found 2 warning signs for Cimarex Energy that deserve your attention before buying any shares.

But note: Cimarex 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, 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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