Insider Spends CA$2.1m Buying More Shares In Cenovus Energy

Those following along with Cenovus Energy Inc. (TSE:CVE) will no doubt be intrigued by the recent purchase of shares by Jonathan McKenzie, President of the company, who spent a stonking CA$2.1m on stock at an average price of CA$20.77. Not only is that a big swing, but it increased their holding size by 10%, which is definitely great to see.

Check out our latest analysis for Cenovus Energy

The Last 12 Months Of Insider Transactions At Cenovus Energy

The insider, Joseph Zieglgansberger, made the biggest insider sale in the last 12 months. That single transaction was for CA$11m worth of shares at a price of CA$28.25 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$20.75. So it may not shed much light on insider confidence at current levels. Joseph Zieglgansberger was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 541.46k shares for CA$13m. On the other hand they divested 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Cenovus Energy

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cenovus Energy insiders own about CA$81m worth of shares. That equates to 0.2% of the company. 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 Cenovus Energy Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Cenovus Energy 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. In terms of investment risks, we've identified 1 warning sign with Cenovus Energy and understanding this should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.