Veren Insiders Added CA$1.07m Of Stock To Their Holdings

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Veren Inc. (TSE:VRN), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Veren

Veren Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider William Holt for CA$500k worth of shares, at about CA$10.15 per share. That means that an insider was happy to buy shares at around the current price of CA$11.05. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Veren share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 107.79k shares for CA$1.1m. On the other hand they divested 47.13k shares, for CA$527k. In the last twelve months there was more buying than selling by Veren insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Insiders At Veren Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Veren. In total, insiders sold CA$527k worth of shares in that time. On the other hand we note Independent Director Myron Stadnyk bought CA$58k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Veren insiders own about CA$43m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Veren Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Veren, in the last three months. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Veren. Every company has risks, and we've spotted 5 warning signs for Veren (of which 2 are a bit unpleasant!) you should know about.

Of course Veren 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com