Investors who take an interest in NuVista Energy Ltd. (TSE:NVA) should definitely note that the Independent Director, Ronald J. Poelzer, recently paid CA$1.45 per share to buy CA$580k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 10.1%.
The Last 12 Months Of Insider Transactions At NuVista Energy
In fact, the recent purchase by Independent Director Ronald J. Poelzer was not their only acquisition of NuVista Energy shares this year. They previously made an even bigger purchase of CA$863k worth of shares at a price of CA$3.45 per share. That means that an insider was happy to buy shares at above the current price of CA$1.61. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 908k shares for CA$2.7m. On the other hand they divested 101k shares, for CA$598k. In the last twelve months there was more buying than selling by NuVista Energy insiders. They paid about CA$2.98 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by 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!
Does NuVista Energy Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that NuVista Energy insiders own about CA$13m worth of shares (which is 3.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The NuVista Energy Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of NuVista Energy we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in NuVista Energy, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.