Chevron Corporation (NYSE:CVX) shareholders (or potential shareholders) will be happy to see that the Independent Director, Charles Moorman, recently bought a whopping US$599k worth of stock, at a price of US$91.43. That increased their holding by a full 94%, 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.
The Last 12 Months Of Insider Transactions At Chevron
In fact, the recent purchase by Charles Moorman was the biggest purchase of Chevron shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is US$98.53. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for Chevron share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 12.70k shares worth US$1.3m. On the other hand they divested 6300 shares, for US$769k. In the last twelve months there was more buying than selling by Chevron insiders. Their average price was about US$102. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.02% of Chevron shares, worth about US$37m. 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 Chevron Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Chevron shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 3 warning signs for Chevron you should be aware of.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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