President & COO of Civitas Resources Picks Up 53% More Stock

Civitas Resources, Inc. (NYSE:CIVI) shareholders (or potential shareholders) will be happy to see that the President & COO, Clayton Carrell, recently bought a whopping US$875k worth of stock, at a price of US$28.22. That purchase boosted their holding by 53%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

We've discovered 4 warning signs about Civitas Resources. View them for free.

The Last 12 Months Of Insider Transactions At Civitas Resources

Notably, that recent purchase by Clayton Carrell is the biggest insider purchase of Civitas Resources shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$31.80), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Civitas Resources insiders were buying shares, but not selling. 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!

View our latest analysis for Civitas Resources

Civitas Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Civitas Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Civitas Resources shares, worth about US$12m. 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 Do The Civitas Resources Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Civitas Resources we think they are probably pretty confident of a bright future. 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. Our analysis shows 4 warning signs for Civitas Resources (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course Civitas Resources 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 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.