Stock Analysis

Imperial Oil Limited (TSE:IMO) insiders who sold CA$1.3m worth of stock earlier this year are probably glad they did so as market cap slides to CA$36b

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Insiders at Imperial Oil Limited (TSE:IMO) sold CA$1.3m worth of stock at an average price of CA$66.76 a share over the past year, making the most of their investment. The company's market worth decreased by CA$3.0b over the past week after the stock price dropped 7.6%, although insiders were able to minimize their losses

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

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The Last 12 Months Of Insider Transactions At Imperial Oil

Over the last year, we can see that the biggest insider sale was by the insider, Bruce Jolly, for CA$1.3m worth of shares, at about CA$66.76 per share. That means that an insider was selling shares at around the current price of CA$61.56. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Bruce Jolly.

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!

TSX:IMO Insider Trading Volume March 20th 2023

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Does Imperial Oil Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.02% of Imperial Oil shares, worth about CA$7.3m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Imperial Oil Insiders?

It doesn't really mean much that no insider has traded Imperial Oil shares in the last quarter. The insider transactions at Imperial Oil are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Imperial Oil and understanding it should be part of your investment process.

But note: Imperial Oil 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, but not derivative transactions.

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