Trade Alert: The Chief Sustainability Officer & Senior VP of Stakeholder Engagement Of Cenovus Energy Inc. (TSE:CVE), Rhona Delfrari, Has Just Spent CA$56k Buying 40% More Shares

Even if it's not a huge purchase, we think it was good to see that Rhona Delfrari, the Chief Sustainability Officer & Senior VP of Stakeholder Engagement of Cenovus Energy Inc. (TSE:CVE) recently shelled out CA$56k to buy stock, at CA$8.65 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 40%.

View our latest analysis for Cenovus Energy

Cenovus Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Alexander Pourbaix for CA$502k worth of shares, at about CA$9.04 per share. That means that an insider was happy to buy shares at above the current price of CA$8.57. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Cenovus Energy insiders bought shares during the last year, they didn't sell. Their average price was about CA$5.78. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Cenovus Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Cenovus Energy Boast High 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. Insiders own 0.1% of Cenovus Energy shares, worth about CA$24m. 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 Cenovus Energy Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Cenovus Energy we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with Cenovus Energy (including 2 which shouldn't be ignored).

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, but not derivative transactions.

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