Have Insiders Sold PrimeEnergy Resources Shares Recently?

We wouldn't blame PrimeEnergy Resources Corporation (NASDAQ:PNRG) shareholders if they were a little worried about the fact that Robert de Rothschild, a company insider, recently netted about US$760k selling shares at an average price of US$133. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.1%.

View our latest analysis for PrimeEnergy Resources

The Last 12 Months Of Insider Transactions At PrimeEnergy Resources

Notably, that recent sale by insider Robert de Rothschild was not the only time they sold PrimeEnergy Resources shares this year. They previously made an even bigger sale of -US$1.7m worth of shares at a price of US$97.50 per share. That means that even when the share price was below the current price of US$147, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 6.0% of Robert de Rothschild's holding.

Insiders in PrimeEnergy Resources didn't buy any shares in the last year. 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!

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Does PrimeEnergy Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that PrimeEnergy Resources insiders own 62% of the company, worth about US$151m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At PrimeEnergy Resources Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since PrimeEnergy Resources is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PrimeEnergy Resources. For instance, we've identified 2 warning signs for PrimeEnergy Resources (1 is potentially serious) you should be aware of.

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 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.