Greenfire Resources Independent Chair of the Company Board Julian McIntyre Sells 100% Of Holding

Some Greenfire Resources Ltd. (NYSE:GFR) shareholders may be a little concerned to see that the Independent Chair of the Company Board, Julian McIntyre, recently sold a substantial US$157m worth of stock at a price of US$8.04 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for Greenfire Resources

Greenfire Resources Insider Transactions Over The Last Year

Notably, that recent sale by Julian McIntyre is the biggest insider sale of Greenfire Resources shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$7.51. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 596.39k shares for US$4.0m. But they sold 31.53m shares for US$241m. Over the last year we saw more insider selling of Greenfire Resources shares, than buying. The sellers received a price of around CA$7.64, on average. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. 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!

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Does Greenfire Resources Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Greenfire Resources insiders own 43% of the company, currently worth about US$225m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Greenfire Resources Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Greenfire Resources, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greenfire Resources. At Simply Wall St, we've found that Greenfire Resources has 3 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

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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.