Insiders Sold Frontera Energy Prematurely At US$10.73 With Stock Trading Higher

Frontera Energy Corporation's (TSE:FEC) value has fallen 13% in the last week, but insiders who sold US$192k worth of stock over the last year have had less success. The average selling price of US$10.73 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Frontera Energy

The Last 12 Months Of Insider Transactions At Frontera Energy

In the last twelve months, the biggest single sale by an insider was when the Corporate Vice President of Operations, Ivan Arevalo, sold CA$192k worth of shares at a price of CA$10.80 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of CA$7.65. So it may not shed much light on insider confidence at current levels. Ivan Arevalo was the only individual insider to sell over the last year.

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!

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Frontera Energy Insiders Are Selling The Stock

The last three months saw significant insider selling at Frontera Energy. Specifically, Corporate Vice President of Operations Ivan Arevalo ditched CA$192k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Frontera Energy

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 what we can see in our data, insiders own only about CA$1.3m worth of Frontera Energy shares. We might be missing something but that seems like very low insider ownership.

What Might The Insider Transactions At Frontera Energy Tell Us?

An insider hasn't bought Frontera Energy stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frontera Energy. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of 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.

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.