Tourmaline Oil Insiders Placed Bullish Bets Worth CA$4.41m

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tourmaline Oil Corp.'s (TSE:TOU) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Tourmaline Oil

Tourmaline Oil Insider Transactions Over The Last Year

The insider, William Kirker, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.4m worth of shares at a price of CA$66.37 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$67.07. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 7.7% of William Kirker's stake. William Kirker was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 70.88k shares worth CA$4.4m. On the other hand they divested 66.00k shares, for CA$4.4m. In total, Tourmaline Oil insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Tourmaline Oil Insiders Bought Stock Recently

It's good to see that Tourmaline Oil insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$702k for shares in the company -- and none sold. This makes one think the business has some good points.

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. It's great to see that Tourmaline Oil insiders own 4.9% of the company, worth about CA$1.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Tourmaline Oil Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tourmaline Oil. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Tourmaline Oil has 1 warning sign we think you should be aware of.

Of course Tourmaline Oil 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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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.