Jonathan Kanderka Spends CA$74k On Greenfire Resources Stock

Even if it's not a huge purchase, we think it was good to see that Jonathan Kanderka, the Chief Operating Officer of Greenfire Resources Ltd. (NYSE:GFR) recently shelled out US$74k to buy stock, at US$7.40 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Greenfire Resources

The Last 12 Months Of Insider Transactions At Greenfire Resources

Over the last year, we can see that the biggest insider sale was by the Independent Director, Jonathan Klesch, for US$26m worth of shares, at about US$5.44 per share. That means that even when the share price was below the current price of US$7.39, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 86% of Jonathan Klesch's holding.

Over the last year, we can see that insiders have bought 296.39k shares worth US$1.6m. But insiders sold 4.76m shares worth US$26m. Over the last year we saw more insider selling of Greenfire Resources shares, than buying. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Greenfire Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Greenfire Resources insiders own 43% of the company, currently worth about US$221m based on the recent share price. 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 Greenfire Resources Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Greenfire Resources insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Greenfire Resources that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.