Have Insiders Sold Canadian Natural Resources Shares Recently?

We wouldn't blame Canadian Natural Resources Limited (TSE:CNQ) shareholders if they were a little worried about the fact that Norman Edwards, the Executive Chairman recently netted about CA$25m selling shares at an average price of CA$98.46. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.2%.

See our latest analysis for Canadian Natural Resources

The Last 12 Months Of Insider Transactions At Canadian Natural Resources

In fact, the recent sale by Executive Chairman Norman Edwards was not their only sale of Canadian Natural Resources shares this year. Earlier in the year, they fetched CA$88.86 per share in a -CA$42m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$98.28. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.1%of Norman Edwards's holding.

In the last twelve months insiders purchased 22.43k shares for CA$900k. But they sold 1.99m shares for CA$175m. In total, Canadian Natural Resources insiders sold more than they bought over the last year. The average sell price was around CA$87.90. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and 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!

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).

Does Canadian Natural Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Canadian Natural Resources insiders own 2.3% of the company, worth about CA$2.4b. 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 Canadian Natural Resources Tell Us?

The insider sales have outweighed the insider buying, at Canadian Natural Resources, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Canadian Natural Resources.

But note: Canadian Natural Resources 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.