Insider Stock Buying Reaches US$3.70m On CNX Resources

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 we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for CNX Resources

The Last 12 Months Of Insider Transactions At CNX Resources

Over the last year, we can see that the biggest insider purchase was by Independent Director Bernard Lanigan for US$3.7m worth of shares, at about US$22.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$27.00. 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$3.7m for 174.06k shares. But they sold 1.23k shares for US$26k. Overall, CNX Resources insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does CNX Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. It appears that CNX Resources insiders own 2.3% of the company, worth about US$92m. 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 Does This Data Suggest About CNX Resources Insiders?

It doesn't really mean much that no insider has traded CNX Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think CNX Resources insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with CNX Resources (including 1 which is a bit unpleasant).

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.