Don't Ignore The Fact That This Insider Just Sold Some Shares In Continental Resources, Inc. (NYSE:CLR)

We'd be surprised if Continental Resources, Inc. (NYSE:CLR) shareholders haven't noticed that the Independent Director, Ellis McCain, recently sold US$166k worth of stock at US$30.63 per share. On the bright side, that sale was only 9.2% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Continental Resources

The Last 12 Months Of Insider Transactions At Continental Resources

Over the last year, we can see that the biggest insider purchase was by Founder & Executive Chairman Harold Hamm for US$57m worth of shares, at about US$17.01 per share. We do like to see buying, but this purchase was made at well below the current price of US$30.73. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$137m for 8.32m shares. But they sold 5.42k shares for US$166k. In the last twelve months there was more buying than selling by Continental Resources insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Continental Resources is not the only stock that insiders are buying. 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 Continental Resources

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Continental Resources insiders own 84% of the company, currently worth about US$9.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Continental Resources Insiders?

Unfortunately, there has been more insider selling of Continental Resources stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Continental Resources. Every company has risks, and we've spotted 2 warning signs for Continental Resources you should know about.

But note: Continental 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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