Some Parsley Energy, Inc. (NYSE:PE) shareholders may be a little concerned to see that the Executive VP & CFO, Ryan Dalton, recently sold a substantial US$668k worth of stock at a price of US$11.14 per share. That’s a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Parsley Energy
Over the last year, we can see that the biggest insider sale was by the Founder & Executive Chairman, Bryan Sheffield, for US$5.0m worth of shares, at about US$15.63 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$11.25). So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid US$292k for 22.42k shares. On the other hand they divested 416.70k shares, for US$6.1m. All up, insiders sold more shares in Parsley Energy than they bought, over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. Parsley Energy insiders own about US$143m worth of shares (which is 3.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Parsley Energy Tell Us?
Insiders sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. While we like knowing 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. In terms of investment risks, we’ve identified 4 warning signs with Parsley Energy and understanding them should be part of your investment process.
Of course Parsley Energy 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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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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