Even if it’s not a huge purchase, we think it was good to see that John Frank, the Independent Director of Chevron Corporation (NYSE:CVX) recently shelled out US$55k to buy stock, at US$110 per share. While that isn’t the hugest buy, it actually boosted their shareholding by 200%, which is good to see.
Check out our latest analysis for Chevron
Chevron Insider Transactions Over The Last Year
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 what is clear is that an insider saw fit to sell at around the current price of US$112. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign. Enrique Hernandez was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 4.75k shares worth US$557k. But insiders sold 6300 shares worth US$769k. Enrique Hernandez ditched 6300 shares over the year. The average price per share was US$122. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Chevron better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Chevron
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.02% of Chevron shares, worth about US$43m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Chevron Insider Transactions Indicate?
It is good to see the recent insider purchase. But we can’t say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Chevron, insiders don’t own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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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