Don't Ignore The Fact That This Insider Just Sold Some Shares In Bonanza Creek Energy, Inc. (NYSE:BCEI)

By
Simply Wall St
Published
March 14, 2021
NYSE:BCEI

Investors may wish to note that the Senior Vice President of Operations of Bonanza Creek Energy, Inc., Dean Tinsley, recently netted US$76k from selling stock, receiving an average price of US$38.20. It might not be a huge sale, but it did reduce their holding size 13%, hardly encouraging.

View our latest analysis for Bonanza Creek Energy

Bonanza Creek Energy Insider Transactions Over The Last Year

Notably, that recent sale by Dean Tinsley is the biggest insider sale of Bonanza Creek Energy shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$34.89. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:BCEI Insider Trading Volume March 14th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Bonanza Creek Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.8% of Bonanza Creek Energy shares, worth about US$5.8m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Bonanza Creek Energy Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Bonanza Creek Energy makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for Bonanza Creek Energy that deserve your attention before buying any shares.

Of course Bonanza Creek Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Promoted
When trading Bonanza Creek Energy or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.