Stock Analysis

The Executive VP & COO of Devon Energy Corporation (NYSE:DVN), Clay Gaspar, Just Bought 3.1% More Shares

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Devon Energy Corporation (NYSE:DVN) shareholders (or potential shareholders) will be happy to see that the Executive VP & COO, Clay Gaspar, recently bought a whopping US$1m worth of stock, at a price of US$49.98. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.1%.

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The Last 12 Months Of Insider Transactions At Devon Energy

Notably, that recent purchase by Clay Gaspar is the biggest insider purchase of Devon Energy shares that we've seen in the last year. That means that even when the share price was higher than US$46.27 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 47.21k shares worth US$2.4m. But they sold 28.20k shares for US$1.9m. In the last twelve months there was more buying than selling by Devon Energy 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!

NYSE:DVN Insider Trading Volume March 17th 2023

Devon Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Devon Energy

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. Devon Energy insiders own about US$204m worth of shares (which is 0.7% of the company). 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 Devon Energy Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Devon Energy insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Devon Energy. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Devon Energy.

But note: Devon Energy 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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