Don't Ignore The Insider Selling In Coelacanth Energy

We wouldn't blame Coelacanth Energy Inc. (CVE:CEI) shareholders if they were a little worried about the fact that Robert Zakresky, the President recently netted about CA$1.3m selling shares at an average price of CA$0.81. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.3%.

See our latest analysis for Coelacanth Energy

The Last 12 Months Of Insider Transactions At Coelacanth Energy

In fact, the recent sale by Robert Zakresky was the biggest sale of Coelacanth Energy shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of CA$0.80. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year we saw more insider selling of Coelacanth Energy shares, than buying. 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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Insider Ownership Of Coelacanth Energy

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. Insiders own 12% of Coelacanth Energy shares, worth about CA$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Coelacanth Energy Tell Us?

Insiders haven't bought Coelacanth Energy stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coelacanth Energy. Our analysis shows 2 warning signs for Coelacanth Energy (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

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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.