Interim CFO of Parex Resources Cameron Grainger Buys 51% More Shares

Investors who take an interest in Parex Resources Inc. (TSE:PXT) should definitely note that the Interim CFO, Cameron Grainger, recently paid CA$13.45 per share to buy CA$182k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 51%, potentially signalling some real optimism.

Check out our latest analysis for Parex Resources

The Last 12 Months Of Insider Transactions At Parex Resources

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$13.75. 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$2.8m worth of shares.

Over the last year, we can see that insiders have bought 159.87k shares worth CA$2.8m. On the other hand they divested 251.00k shares, for CA$5.8m. All up, insiders sold more shares in Parex Resources than they bought, over the last year. The average sell price was around US$23.11. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of CA$13.75. 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!

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Insider Ownership

Many investors like to check how much of a company is owned by 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. Insiders own 1.6% of Parex Resources shares, worth about CA$22m. 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?

It's certainly positive to see the recent insider purchases. 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. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Parex Resources.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.