We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares in Carrizo Oil & Gas, Inc. (NASDAQ:CRZO).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Carrizo Oil & Gas Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by VP & COO J. Fisher for US$890k worth of shares, at about US$26.00 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$11.15. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders netted US$1.9m for 71.00k shares sold. All up, insiders sold more shares in Carrizo Oil & Gas than they bought, over the last year. The average sell price was around US$26.15. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$11.15). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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 appears that Carrizo Oil & Gas insiders own 6.6% of the company, worth about US$68m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Carrizo Oil & Gas Insiders?
The fact that there have been no Carrizo Oil & Gas insider transactions recently certainly doesn’t bother us. Still, the insider transactions at Carrizo Oil & Gas in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Carrizo Oil & Gas, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Thank you for reading.