Have PHX Energy Services Insiders Been Selling Stock?

We wouldn't blame PHX Energy Services Corp. (TSE:PHX) shareholders if they were a little worried about the fact that John Hooks, the Executive Chairman recently netted about CA$2.4m selling shares at an average price of CA$8.03. However, that sale only accounted for 6.3% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At PHX Energy Services

In fact, the recent sale by John Hooks was the biggest sale of PHX Energy Services shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$8.26, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 6.3% of John Hooks's holding.

Over the last year, we can see that insiders have bought 9.71k shares worth CA$77k. But they sold 397.20k shares for CA$3.3m. In total, PHX Energy Services insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for PHX Energy Services

I will like PHX Energy Services better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PHX Energy Services insiders own about CA$55m worth of shares. That equates to 15% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At PHX Energy Services Tell Us?

The stark truth for PHX Energy Services is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PHX Energy Services. Case in point: We've spotted 4 warning signs for PHX Energy Services you should be aware of.

But note: PHX Energy Services 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.