Insiders Sold Razor Energy Prematurely At CA$1.75 With Stock Trading Higher

Despite the fact that Razor Energy Corp.'s (CVE:RZE) value has dropped 11% in the last week insiders who sold CA$274k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of CA$1.75 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Razor Energy

Razor Energy Insider Transactions Over The Last Year

The Founder & Director, Frank Muller, made the biggest insider sale in the last 12 months. That single transaction was for CA$225k worth of shares at a price of CA$2.10 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.49. So it may not tell us anything about how insiders feel about the current share price.

In total, Razor Energy insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Razor Energy Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Razor Energy insiders own about CA$2.1m worth of shares (which is 12% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Razor Energy Insider Transactions Indicate?

The fact that there have been no Razor Energy insider transactions recently certainly doesn't bother us. Our analysis of Razor Energy insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. Our analysis shows 4 warning signs for Razor Energy (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

But note: Razor 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.