Have Ovintiv Inc. (TSE:OVV) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
April 02, 2021
TSX:OVV

We'd be surprised if Ovintiv Inc. (TSE:OVV) shareholders haven't noticed that the Senior Vice President of Investor Relations, Stephen Campbell, recently sold CA$369k worth of stock at CA$30.75 per share. That sale was 21% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Ovintiv

The Last 12 Months Of Insider Transactions At Ovintiv

Notably, that recent sale by Stephen Campbell is the biggest insider sale of Ovintiv shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$31.19, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 21% of Stephen Campbell's holding.

In the last twelve months insiders purchased 11.20k shares for CA$122k. But insiders sold 20.10k shares worth CA$461k. Over the last year we saw more insider selling of Ovintiv shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSX:OVV Insider Trading Volume April 2nd 2021

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 Ovintiv

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of Ovintiv shares, worth about CA$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Ovintiv Tell Us?

An insider hasn't bought Ovintiv stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Ovintiv you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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