Pembina Pipeline Insiders Sold CA$5.1m Of Shares Suggesting Hesitancy

Many Pembina Pipeline Corporation (TSE:PPL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Pembina Pipeline

The President, J. Burrows, made the biggest insider sale in the last 12 months. That single transaction was for CA$3.4m worth of shares at a price of CA$50.57 each. That means that an insider was selling shares at slightly below the current price (CA$52.88). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 59% of J. Burrows's stake.

In the last twelve months insiders purchased 19.48k shares for CA$1.0m. But they sold 101.11k shares for CA$5.1m. All up, insiders sold more shares in Pembina Pipeline than they bought, over the last year. 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!

See our latest analysis for Pembina Pipeline

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Pembina Pipeline Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Pembina Pipeline. Overall, two insiders shelled out CA$311k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Pembina Pipeline

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pembina Pipeline insiders own about CA$21m worth of shares. That equates to 0.07% of the company. 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 Pembina Pipeline Tell Us?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Pembina Pipeline insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. 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. Case in point: We've spotted 3 warning signs for Pembina Pipeline you should be aware of.

But note: Pembina Pipeline 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.