Insiders Re-Evaluate Their CA$799.1k Stock Purchase As Ensign Energy Services Falls To CA$443m

Insiders who acquired CA$799.1k worth of Ensign Energy Services Inc.'s (TSE:ESI) stock at an average price of CA$2.91 in the past 12 months may be dismayed by the recent 10% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$662.8k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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 President Robert Geddes bought CA$747k worth of shares at a price of CA$2.99 per share. That means that an insider was happy to buy shares at above the current price of CA$2.41. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Ensign Energy Services insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ensign Energy Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Ensign Energy Services Insiders Bought Stock Recently

There was some insider buying at Ensign Energy Services over the last quarter. Independent Director Cary Moomjian shelled out CA$52k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does Ensign Energy Services 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ensign Energy Services insiders own about CA$120m worth of shares. That equates to 27% 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.

What Might The Insider Transactions At Ensign Energy Services Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ensign Energy Services. Looks promising! 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. At Simply Wall St, we found 1 warning sign for Ensign Energy Services that deserve your attention before buying any shares.

Of course Ensign Energy Services 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 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.