Cenovus Energy Insiders Added CA$11.4m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in Cenovus Energy Inc. (TSE:CVE). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Cenovus Energy

Cenovus Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Joseph Zieglgansberger, sold CA$11m worth of shares at a price of CA$28.25 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$22.24. So it is hard to draw any strong conclusion from it. Joseph Zieglgansberger was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 470.96k shares worth CA$11m. But they sold 389.65k shares for CA$11m. In the last twelve months there was more buying than selling by Cenovus Energy insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Cenovus Energy Have Bought Stock Recently

It's good to see that Cenovus Energy insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$1.5m worth of shares. That shows some optimism about the company's future.

Insider Ownership

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. It appears that Cenovus Energy insiders own 0.2% of the company, worth about CA$86m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Cenovus Energy Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Cenovus Energy shares, given these transactions (along with notable insider ownership of the company). 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. For example - Cenovus Energy has 1 warning sign we think 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 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.