Michael Rose Spends CA$6.9m On Tourmaline Oil Stock

Those following along with Tourmaline Oil Corp. (TSE:TOU) will no doubt be intrigued by the recent purchase of shares by Michael Rose, Chairman of the Board of the company, who spent a stonking CA$6.9m on stock at an average price of CA$57.79. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.8%.

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The Last 12 Months Of Insider Transactions At Tourmaline Oil

Notably, that recent purchase by Michael Rose is the biggest insider purchase of Tourmaline Oil shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$57.97. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Tourmaline Oil share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid CA$15m for 255.05k shares. On the other hand they divested 122.00k shares, for CA$8.0m. In total, Tourmaline Oil insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Tourmaline Oil

Tourmaline Oil is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Tourmaline Oil Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tourmaline Oil insiders own 4.8% of the company, currently worth about CA$1.1b 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 Do The Tourmaline Oil Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tourmaline Oil. One for the watchlist, at least! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Tourmaline Oil.

But note: Tourmaline Oil 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.