Independent Director Keith A. MacPhail Just Bought 39% More Shares In NuVista Energy Ltd. (TSE:NVA)

By
Simply Wall St
Published
October 07, 2020

NuVista Energy Ltd. (TSE:NVA) shareholders (or potential shareholders) will be happy to see that the Independent Director, Keith A. MacPhail, recently bought a whopping CA$698k worth of stock, at a price of CA$0.70. Not only is that a big swing, but it increased their holding size by 39%, which is definitely great to see.

See our latest analysis for NuVista Energy

NuVista Energy Insider Transactions Over The Last Year

In fact, the recent purchase by Keith A. MacPhail was the biggest purchase of NuVista Energy shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$0.72 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the NuVista Energy insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 3.04m shares worth CA$1.6m. On the other hand they divested 159.20k shares, for CA$161k. In total, NuVista Energy insiders bought more than they sold over the last year. The average buy price was around CA$0.53. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:NVA Insider Trading Volume October 7th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does NuVista Energy 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. Our data indicates that NuVista Energy insiders own about CA$8.2m worth of shares (which is 5.0% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At NuVista Energy Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that NuVista Energy insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NuVista Energy. Case in point: We've spotted 2 warning signs for NuVista Energy you should be aware of.

Of course NuVista Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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