CNX Resources Insiders Added US$4.04m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in CNX Resources Corporation (NYSE:CNX). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

View our latest analysis for CNX Resources

CNX Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Bernard Lanigan for US$2.0m worth of shares, at about US$26.81 per share. We do like to see buying, but this purchase was made at well below the current price of US$36.82. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$4.0m for 151.23k shares. But insiders sold 1.23k shares worth US$26k. In the last twelve months there was more buying than selling by CNX Resources insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

CNX 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.

CNX Resources Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at CNX Resources. We can see that Independent Director Bernard Lanigan paid US$2.0m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of CNX 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CNX Resources insiders own about US$137m worth of shares (which is 2.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The CNX Resources Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CNX Resources insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 CNX Resources you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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