It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Cequence Energy Ltd. (TSE:CQE), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Cequence Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP & Director Howard Crone bought CA$719k worth of shares at a price of CA$0.70 per share. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term. Notably Howard Crone was also the biggest seller, having sold CA$242 worth of shares.
In the last twelve months insiders purchased 2.65m shares for CA$1.9m. But they sold 390.00 for CA$242. Overall, Cequence Energy insiders were net buyers last year. They paid about CA$0.70 on average. These transactions suggest that insiders have considered the current price of CA$0.59 attractive. You can see a visual depiction of insider transactions 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!
Cequence Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Cequence Energy Insiders Buying Or Selling?
Over the last three months, we’ve seen a bit of insider buying at Cequence Energy. Howard Crone bought CA$14k worth of shares in that time. But Howard Crone sold CA$242 worth. It is nice to see that insiders have bought, but the quantum isn’t large enough to get us excited.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Cequence Energy insiders own about CA$1.8m worth of shares (which is 13% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Cequence Energy Tell Us?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Cequence Energy insiders are doubting the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.