Investors who take an interest in Encana Corporation (TSE:ECA) should definitely note that insider Thomas Ricks recently paid US$5.21 per share to buy US$325k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 32%.
Encana Insider Transactions Over The Last Year
Independent Chairman of the Board Clayton Woitas made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.2m worth of shares at a price of CA$11.51 each. That means that even when the share price was higher than CA$5.44 (the recent price), an insider wanted to purchase shares. 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. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$6.9m for 763773 shares. But insiders sold 16000 shares worth CA$158k. In total, Encana insiders bought more than they sold over the last year. The average buy price was around CA$8.98. I’d consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Encana is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Encana Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Encana insiders own 0.2% of the company, worth about CA$12m. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Encana 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 Encana shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Encana may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.