Yahoo Finance Bullish Cenovus Energy Insiders Loaded Up On CA$6.81m Of Stock
In the last year, multiple insiders have substantially increased their holdings of Cenovus Energy Inc. (TSE:CVE) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Cenovus Energy
The Last 12 Months Of Insider Transactions At Cenovus Energy
In fact, the recent purchase by Jonathan McKenzie was the biggest purchase of Cenovus Energy shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of CA$28.85. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Cenovus Energy insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$23.69. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
Cenovus Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Cenovus Energy Insiders Bought Stock Recently
It's good to see that Cenovus Energy insiders have made notable investments in the company's shares. President Jonathan McKenzie spent CA$3.8m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership Of Cenovus Energy
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 appears that Cenovus Energy insiders own 0.09% of the company, worth about CA$48m. 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 Does This Data Suggest About Cenovus Energy Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Cenovus Energy we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Cenovus Energy.
But note: Cenovus Energy 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.
