Imad Mohsen Bought 19% More Shares In Parex Resources

Potential Parex Resources Inc. (TSE:PXT) shareholders may wish to note that the President, Imad Mohsen, recently bought CA$175k worth of stock, paying CA$13.33 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 19%.

View our latest analysis for Parex Resources

Parex Resources Insider Transactions Over The Last Year

The Independent Chairman of the Board, Wayne Foo, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.7m worth of shares at a price of CA$23.26 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$13.23. So it may not tell us anything about how insiders feel about the current share price. Notably Wayne Foo was also the biggest buyer, having purchased CA$2.2m worth of shares.

In the last twelve months insiders purchased 118.12k shares for CA$2.2m. But insiders sold 275.20k shares worth CA$6.5m. Over the last year we saw more insider selling of Parex Resources shares, than buying. They sold for an average price of about US$23.45. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is CA$13.23). 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!

I will like Parex Resources 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.

Does Parex Resources Boast High 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. Insiders own 1.5% of Parex Resources shares, worth about CA$20m. 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 Parex Resources Tell Us?

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Parex Resources insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Parex Resources (1 doesn't sit too well with us) you should be aware of.

Of course Parex 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.

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