Bullish Gibson Energy Insiders Loaded Up On CA$1.50m Of Stock

Quite a few insiders have dramatically grown their holdings in Gibson Energy Inc. (TSE:GEI) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Gibson Energy

Gibson Energy Insider Transactions Over The Last Year

The CEO, President & Non-Independent Director Curtis Philippon made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$22.34 each. That means that an insider was happy to buy shares at around the current price of CA$23.99. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 67.94k shares worth CA$1.5m. On the other hand they divested 35.69k shares, for CA$713k. In total, Gibson Energy insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Gibson Energy Have Bought Stock Recently

It's good to see that Gibson Energy insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$1.3m for shares in the company -- and none sold. That shows some optimism about the company's future.

Does Gibson Energy Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Gibson Energy insiders own 0.4% of the company, worth about CA$16m. 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 Gibson Energy Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Gibson Energy insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gibson Energy. Every company has risks, and we've spotted 3 warning signs for Gibson Energy (of which 1 can't be ignored!) you should know about.

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 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.