Even if it’s not a huge purchase, we think it was good to see that Robert Disbrow, a Pine Cliff Energy Ltd. (TSE:PNE) insider, recently shelled out CA$96k to buy stock, at CA$0.10 per share. However, we do note that it only increased their holding by 2.4%, and it wasn’t a huge purchase by absolute value, either.
Pine Cliff Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board George Fink bought CA$500k worth of shares at a price of CA$0.23 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 10.7m shares worth CA$2.2m. But they sold 1.8m for CA$491k. Overall, Pine Cliff Energy insiders were net buyers last year. The average buy price was around CA$0.21. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Pine Cliff Energy
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. It appears that Pine Cliff Energy insiders own 22% of the company, worth about CA$8.0m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Pine Cliff Energy Insiders?
It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Pine Cliff 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 Pine Cliff Energy, you should check out this free report on analyst forecasts for the company.
But note: Pine Cliff Energy 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, but not derivative transactions.
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