Insiders Could Have Profited By Holding onto Crew Energy Shares Despite 10.0% Drop

Crew Energy Inc.'s (TSE:CR) value has fallen 10.0% in the last week, but insiders who sold CA$2.2m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of CA$5.84 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Crew Energy

Crew Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, John Leach, sold CA$977k worth of shares at a price of CA$6.51 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$3.96). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 115.67k shares for CA$560k. But insiders sold 381.50k shares worth CA$2.2m. All up, insiders sold more shares in Crew Energy than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Crew Energy Insiders Bought Stock Recently

At Crew Energy,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent CA$514k on shares. On the other hand, insiders netted CA$392k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Crew Energy insiders own about CA$77m worth of shares. That equates to 13% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Crew Energy Tell Us?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Crew Energy insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Crew Energy.

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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.