Stock Analysis

Non-Executive Director Of California Resources Sold 57% Of Their Shares

NYSE:CRC
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We wouldn't blame California Resources Corporation (NYSE:CRC) shareholders if they were a little worried about the fact that Mark McFarland, the Non-Executive Director recently netted about US$8.5m selling shares at an average price of US$47.09. Probably the most concerning element of the whole transaction is that the disposal amounted to 57% of their entire holding.

Check out our latest analysis for California Resources

The Last 12 Months Of Insider Transactions At California Resources

Notably, that recent sale by Mark McFarland is the biggest insider sale of California Resources shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$47.21. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:CRC Insider Trading Volume May 27th 2024

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Does California Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. California Resources insiders own about US$38m worth of shares. That equates to 1.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At California Resources Tell Us?

The stark truth for California Resources is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing California Resources. For example - California Resources has 4 warning signs we think you should be aware of.

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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Find out whether California Resources is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.