Permian Resources Corporation's (NYSE:PR) insiders who sold earlier this year may be offered solace in this recent price drop

Permian Resources Corporation's (NYSE:PR) stock price has dropped 13% in the previous week, but insiders who sold US$3.3m in stock over the past year have had less luck. Given that the average selling price of US$9.31 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Permian Resources

Permian Resources Insider Transactions Over The Last Year

In fact, the recent sale by David Leuschen was the biggest sale of Permian Resources shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$9.34. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Permian Resources didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Permian Resources better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Permian Resources Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Permian Resources. Specifically, insider David Leuschen ditched US$2.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Permian 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. We usually like to see fairly high levels of insider ownership. It's great to see that Permian Resources insiders own 2.0% of the company, worth about US$105m. 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 Do The Permian Resources Insider Transactions Indicate?

An insider hasn't bought Permian Resources stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Permian Resources is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Permian Resources. To that end, you should learn about the 2 warning signs we've spotted with Permian Resources (including 1 which doesn't sit too well with us).

Of course Permian Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.