Have Insiders Sold Paramount Resources Shares Recently?

Some Paramount Resources Ltd. (TSE:POU) shareholders may be a little concerned to see that the Executive Vice President of Corporate Development & Planning, Rodrigo Sousa, recently sold a substantial CA$951k worth of stock at a price of CA$21.85 per share. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Paramount Resources

In fact, the recent sale by Rodrigo Sousa was the biggest sale of Paramount Resources shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$22.46. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 10% of Rodrigo Sousa's stake.

Happily, we note that in the last year insiders paid CA$921k for 55.50k shares. But insiders sold 63.06k shares worth CA$1.5m. All up, insiders sold more shares in Paramount Resources 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Paramount Resources

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Paramount Resources

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.7% of Paramount Resources shares, worth about CA$57m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Paramount Resources Insiders?

Unfortunately, there has been more insider selling of Paramount Resources stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Paramount Resources is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Paramount Resources has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.

Of course Paramount Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.