Vermilion Energy Insiders Sell CA$1.5m Of Stock, Possibly Signalling Caution

Over the past year, many Vermilion Energy Inc. (TSE:VET) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Vermilion Energy

The Last 12 Months Of Insider Transactions At Vermilion Energy

In the last twelve months, the biggest single sale by an insider was when the insider, Jenson Tan, sold CA$825k worth of shares at a price of CA$16.50 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of CA$11.15. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$690k for 47.50k shares. On the other hand they divested 93.40k shares, for CA$1.5m. All up, insiders sold more shares in Vermilion Energy than they bought, over the last year. 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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Vermilion Energy Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Vermilion Energy. In total, insiders bought CA$161k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of Vermilion Energy

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Vermilion Energy insiders own about CA$15m worth of shares. That equates to 0.9% 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 Does This Data Suggest About Vermilion Energy Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but Vermilion Energy insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. 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. At Simply Wall St, we found 1 warning sign for Vermilion Energy that deserve your attention before buying any shares.

But note: Vermilion Energy 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.