Stock Analysis

Insiders are probably glad they sold their shares in Marksmen Energy Inc. (CVE:MAH) after 17% drop

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Insiders seem to have made the most of their holdings by selling CA$343k worth of Marksmen Energy Inc. (CVE:MAH) stock at an average sell price of CA$0.091 during the past year. The company’s market cap plunged by CA$1.9m after price dropped by 17% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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 sale was by the Chairman, Archibald Nesbitt, for CA$94k worth of shares, at about CA$0.085 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 silver lining is that this sell-down took place above the latest price (CA$0.05). So it may not shed much light on insider confidence at current levels. Notably Archibald Nesbitt was also the biggest buyer, having purchased CA$237k worth of shares.

In the last twelve months insiders purchased 3.45m shares for CA$237k. But they sold 3.77m shares for CA$343k. In total, Marksmen Energy insiders sold more than they bought 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!

TSXV:MAH Insider Trading Volume March 17th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Have Marksmen Energy Insiders Traded Recently?

In the last quarter there were insider sales totalling CA$128k. But that was only a smidgen more than the CA$127k worth of buying. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership Of Marksmen Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Marksmen Energy insiders own 55% of the company, worth about CA$5.2m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Marksmen Energy Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Marksmen Energy insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Marksmen Energy is showing 5 warning signs in our investment analysis, and 4 of those are significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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