Insiders at Antero Resources Corporation (NYSE:AR) sold US$1.8m worth of stock, possibly indicating weakness in the future

By
Simply Wall St
Published
November 18, 2021
NYSE:AR
Source: Shutterstock

Over the past year, many Antero Resources Corporation (NYSE:AR) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Antero Resources

The Last 12 Months Of Insider Transactions At Antero Resources

The Independent Director, Robert Clark, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$9.79 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$19.11. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 53% of Robert Clark's holding.

Antero Resources insiders didn't buy any shares 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!

insider-trading-volume
NYSE:AR Insider Trading Volume November 19th 2021

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

Antero Resources Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Antero Resources. VP of Accounting & Chief Accounting Officer Sheri Pearce only netted US$39k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

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. It's great to see that Antero Resources insiders own 7.1% of the company, worth about US$426m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Antero Resources Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Antero Resources insiders selling. 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. Every company has risks, and we've spotted 2 warning signs for Antero Resources you should know about.

But note: Antero Resources 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, but not derivative transactions.

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