Bullish CNX Resources Insiders Loaded Up On US$5.80m Of Stock

Quite a few insiders have dramatically grown their holdings in CNX Resources Corporation (NYSE:CNX) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for CNX Resources

CNX Resources Insider Transactions Over The Last Year

The Independent Director Bernard Lanigan made the biggest insider purchase in the last 12 months. That single transaction was for US$3.7m worth of shares at a price of US$22.00 each. So it's clear an insider wanted to buy, at around the current price, which is US$23.52. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 311.89k shares for US$5.8m. But insiders sold 1.23k shares worth US$26k. In the last twelve months there was more buying than selling by CNX Resources insiders. Their average price was about US$18.59. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have CNX Resources Insiders Traded Recently?

We saw insider selling worth US$26k in the last three months. But that was only a smidgen more than the US$25k worth of buying. Ultimately the overall selling isn't enough to tell us much.

Does CNX 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of CNX Resources shares, worth about US$80m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About CNX Resources Insiders?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. However, our analysis of transactions over the last year is heartening. Insiders own shares in CNX Resources and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CNX Resources. Every company has risks, and we've spotted 2 warning signs for CNX Resources (of which 1 can't be ignored!) you should know about.

But note: CNX 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 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.