How Many TORC Oil & Gas Ltd. (TSE:TOG) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in TORC Oil & Gas Ltd. (TSE:TOG).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for TORC Oil & Gas

TORC Oil & Gas Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Vice President of Operations Shane Manchester bought CA$150k worth of shares at a price of CA$2.50 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$2.91. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the TORC Oil & Gas insiders decided to buy shares at close to current prices. Notably Shane Manchester was also the biggest seller.

Happily, we note that in the last year insiders paid CA$521k for 435.06k shares. But insiders sold 124.43k shares worth CA$298k. In the last twelve months there was more buying than selling by TORC Oil & Gas insiders. They paid about CA$1.20 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

TORC Oil & Gas is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Have TORC Oil & Gas Insiders Traded Recently?

We saw Insiders buy shares worth CA$275k in the last three months. That's only a tiny bit more than the sales, worth CA$274k. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership of TORC Oil & Gas

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. TORC Oil & Gas insiders own about CA$26m worth of shares. That equates to 4.0% 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.

So What Do The TORC Oil & Gas Insider Transactions Indicate?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in TORC Oil & Gas and their transactions don't cause us concern. While we like knowing 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. To that end, you should learn about the 3 warning signs we've spotted with TORC Oil & Gas (including 1 which is a bit concerning).

Of course TORC Oil & Gas 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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