Don't Ignore The Insider Selling In National Fuel Gas

We'd be surprised if National Fuel Gas Company (NYSE:NFG) shareholders haven't noticed that the General Counsel & Secretary, Michael Reville, recently sold US$349k worth of stock at US$54.83 per share. That sale was 21% of their holding, so it does make us raise an eyebrow.

View our latest analysis for National Fuel Gas

National Fuel Gas Insider Transactions Over The Last Year

Notably, that recent sale by Michael Reville is the biggest insider sale of National Fuel Gas shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$55.08. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 21% of Michael Reville's holding.

Michael Reville divested 6.81k shares over the last 12 months at an average price of US$54.69. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like National Fuel Gas better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does National Fuel Gas Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.4% of National Fuel Gas shares, worth about US$75m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The National Fuel Gas Insider Transactions Indicate?

An insider hasn't bought National Fuel Gas stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for National Fuel Gas and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.

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