Don't Ignore The Fact That This Insider Just Sold Some Shares In International Petroleum Corporation (TSE:IPCO)

By
Simply Wall St
Published
December 16, 2020
TSX:IPCO

Anyone interested in International Petroleum Corporation (TSE:IPCO) should probably be aware that the Senior Vice President of Canada, Christopher Hogue, recently divested CA$580k worth of shares in the company, at an average price of CA$2.90 each. The eyebrow raising move amounted to a reduction of 16% in their holding.

See our latest analysis for International Petroleum

International Petroleum Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, John Festival, for CA$992k worth of shares, at about CA$5.95 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 silver lining is that this sell-down took place above the latest price (CA$2.92). So it is hard to draw any strong conclusion from it.

Insiders in International Petroleum didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) 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!

insider-trading-volume
TSX:IPCO Insider Trading Volume December 16th 2020

I will like International Petroleum better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does International Petroleum Boast High Insider Ownership?

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 our data, it seems that International Petroleum insiders own 2.4% of the company, worth about CA$11m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About International Petroleum Insiders?

An insider sold International Petroleum shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for International Petroleum that deserve your attention before buying any shares.

But note: International Petroleum 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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This article by Simply Wall St is general in nature. 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.
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