This Insider Has Just Sold Shares In PHX Energy Services

Some PHX Energy Services Corp. (TSE:PHX) shareholders may be a little concerned to see that the Chairman & CEO, John Hooks, recently sold a substantial CA$941k worth of stock at a price of CA$9.41 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.1%.

Check out our latest analysis for PHX Energy Services

PHX Energy Services Insider Transactions Over The Last Year

Notably, that recent sale by Chairman & CEO John Hooks was not the only time they sold PHX Energy Services shares this year. Earlier in the year, they fetched CA$9.00 per share in a -CA$2.5m sale. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$9.04. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 5.4% of John Hooks's holding.

Over the last year, we can see that insiders have bought 86.27k shares worth CA$728k. But insiders sold 1.38m shares worth CA$13m. In total, PHX Energy Services insiders sold more than they bought over 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does PHX Energy Services Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 14% of PHX Energy Services shares, worth about CA$61m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The PHX Energy Services Insider Transactions Indicate?

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. But since PHX Energy Services is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, PHX Energy Services has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.