Have Insiders Sold Tourmaline Oil Corp. (TSE:TOU) Shares Recently?

By
Simply Wall St
Published
April 14, 2022
TSX:TOU
Source: Shutterstock

Some Tourmaline Oil Corp. (TSE:TOU) shareholders may be a little concerned to see that insider Drew Tumbach recently sold a substantial CA$689k worth of stock at a price of CA$60.05 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.5%.

See our latest analysis for Tourmaline Oil

Tourmaline Oil Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, William Kirker, for CA$6.2m worth of shares, at about CA$33.07 per share. That means that an insider was selling shares at slightly below the current price (CA$62.97). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 18% of William Kirker's stake.

Happily, we note that in the last year insiders paid CA$4.0m for 97.31k shares. On the other hand they divested 198.73k shares, for CA$6.9m. In total, Tourmaline Oil insiders sold more than they bought over the last year. The average sell price was around CA$34.61. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSX:TOU Insider Trading Volume April 14th 2022

I will like Tourmaline Oil better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Tourmaline Oil insiders own 6.2% of the company, currently worth about CA$1.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Tourmaline Oil Insiders?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Tourmaline Oil insiders are fairly aligned, and optimistic. 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. Case in point: We've spotted 4 warning signs for Tourmaline Oil you should be aware of.

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, but not derivative transactions.

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