Despite Marksmen Energy Inc.'s recent decline, insiders have made a around CA$125k profit after buying earlier this year.

By
Simply Wall St
Published
November 29, 2021
TSXV:MAH
Source: Shutterstock

Insiders who purchased Marksmen Energy Inc. (CVE:MAH) shares in the past 12 months are unlikely to be deeply impacted by the stock's 19% decline over the past week. Even after accounting for the recent loss, the CA$299k worth of stock purchased by them is now worth CA$423k or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Marksmen Energy

The Last 12 Months Of Insider Transactions At Marksmen Energy

Over the last year, we can see that the biggest insider purchase was by insider Glenn Walsh for CA$75k worth of shares, at about CA$0.04 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.065), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 6.51m shares worth CA$299k. But they sold 1.10m shares for CA$53k. In total, Marksmen Energy insiders bought more than they sold over the last year. They paid about CA$0.046 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
TSXV:MAH Insider Trading Volume November 30th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Marksmen Energy Have Bought Stock Recently

At Marksmen Energy,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, three insiders bought CA$120k worth of shares in that time. But Chairman Archibald Nesbitt sold shares worth CA$26k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Marksmen Energy insiders own 56% of the company, worth about CA$5.9m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Marksmen Energy Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Marksmen Energy insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing 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. Our analysis shows 6 warning signs for Marksmen Energy (4 make us uncomfortable!) and we strongly recommend you look at these before investing.

Of course Marksmen Energy 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.