It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Stans Energy Corp. (CVE:HRE), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.
Stans Energy Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
Over the last year, we can see that insiders have bought 2.36m shares worth CA$106k. But insiders sold 5217130 shares worth CA$90k. In total, Stans Energy insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Stans Energy Insiders Are Selling The Stock
Over the last three months, we’ve seen a bit of insider selling at Stans Energy. CA$29k worth of shares were sold by insiders. But at least we saw CA$2.4k worth of buying. While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Does Stans 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 5.9% of Stans Energy shares, worth about CA$111k, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The Stans Energy Insider Transactions Indicate?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Stans Energy insiders bought more shares in the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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