One Permian Resources Insider Raised Stake By 240% In Previous Year

Viewing insider transactions for Permian Resources Corporation's (NYSE:PR ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

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.

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Permian Resources Insider Transactions Over The Last Year

The Director William Quinn made the biggest insider purchase in the last 12 months. That single transaction was for US$9.6m worth of shares at a price of US$13.07 each. We do like to see buying, but this purchase was made at well below the current price of US$14.73. 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.

William Quinn bought a total of 1.31m shares over the year at an average price of US$12.68. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Permian Resources

Permian Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Permian Resources insiders own 1.2% of the company, worth about US$141m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Permian Resources Tell Us?

The fact that there have been no Permian Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Permian Resources insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Permian Resources has 1 warning sign we think you should be aware of.

But note: Permian 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.