We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Frontera Energy Corporation (TSE:FEC).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Frontera Energy
Frontera Energy Insider Transactions Over The Last Year
While there weren’t any large insider transactions in the last twelve months, it’s still worth looking at the trading.
Happily, we note that in the last year insiders bought 8.50k shares for a total of CA$154k. In total, Frontera Energy insiders bought more than they sold over the last year. Their average price was about CA$18.11. These transactions suggest that insiders have considered the current price of CA$13.22 attractive. The chart below shows insider transactions over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Frontera Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Frontera Energy Insiders Bought Stock Recently
Over the last quarter, Frontera Energy insiders have spent a meaningful amount on shares. Overall, 3 insiders shelled out US$99k for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership of Frontera Energy
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. From what we can see, insiders own only about CA$187k worth of Frontera Energy shares. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Frontera Energy Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Frontera Energy stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Frontera Energy.
But note: Frontera Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.