It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Granite Oil Corp (TSE:GXO).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Granite Oil Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Founder & Director Martin Cheyne sold CA$203k worth of shares at a price of CA$2.95 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is CA$0.88. So it may not tell us anything about how insiders feel about the current share price. Martin Cheyne was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 68.90k shares for CA$203k. But insiders sold 68.90k shares worth CA$203k. Overall, Granite Oil insiders were net buyers last year. They paid about CA$2.95 on average. This is nice to see since it implies that insiders might see value around current prices (around CA$0.88). You can see a visual depiction of insider transactions over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Granite Oil
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Granite Oil insiders own 10% of the company, worth about CA$2.4m. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The Granite Oil Insider Transactions Indicate?
The fact that there have been no Granite Oil insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Granite Oil insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Granite Oil, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org.