Are Insiders Buying Ensign Energy Services Inc. (TSE:ESI) Stock?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Ensign Energy Services Inc. (TSE:ESI).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Ensign Energy Services

The Last 12 Months Of Insider Transactions At Ensign Energy Services

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Norman Edwards bought CA$620k worth of shares at a price of CA$0.31 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.56. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 2.81m shares for CA$974k. On the other hand they divested 16.93k shares, for CA$20k. In the last twelve months there was more buying than selling by Ensign Energy Services insiders. They paid about CA$0.35 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Ensign Energy Services Have Bought Stock Recently

We saw some Ensign Energy Services insider buying shares in the last three months. In total, insiders bought CA$66k worth of shares in that time. On the other hand, Chief Financial Officer Michael Gray sold CA$20k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership of Ensign Energy Services

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Ensign Energy Services insiders own about CA$54m worth of shares. That equates to 21% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Ensign Energy Services Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Ensign Energy Services insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Ensign Energy Services (including 1 which is concerning).

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, but not derivative transactions.

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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. 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.
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