Canada markets closed
  • S&P/TSX

    20,621.39
    -436.79 (-2.07%)
     
  • S&P 500

    4,397.94
    -84.79 (-1.89%)
     
  • DOW

    34,265.37
    -450.02 (-1.30%)
     
  • CAD/USD

    0.7947
    -0.0052 (-0.65%)
     
  • CRUDE OIL

    84.83
    -0.72 (-0.84%)
     
  • BTC-CAD

    44,156.36
    -1,694.98 (-3.70%)
     
  • CMC Crypto 200

    870.86
    +628.18 (+258.85%)
     
  • GOLD FUTURES

    1,836.10
    -6.50 (-0.35%)
     
  • RUSSELL 2000

    1,987.92
    -36.12 (-1.78%)
     
  • 10-Yr Bond

    1.7470
    -0.0860 (-4.69%)
     
  • NASDAQ

    13,768.92
    -385.10 (-2.72%)
     
  • VOLATILITY

    28.85
    +3.26 (+12.74%)
     
  • FTSE

    7,494.13
    -90.88 (-1.20%)
     
  • NIKKEI 225

    27,522.26
    -250.67 (-0.90%)
     
  • CAD/EUR

    0.7001
    -0.0066 (-0.93%)
     

Bullish insiders bet CA$14m on PetroShale Inc. (CVE:PSH)

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • PSHIF

In the last year, multiple insiders have substantially increased their holdings of PetroShale Inc. (CVE:PSH) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

Check out our latest analysis for PetroShale

PetroShale Insider Transactions Over The Last Year

The Executive Chairman M. Chernoff made the biggest insider purchase in the last 12 months. That single transaction was for CA$14m worth of shares at a price of CA$0.20 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.37. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid CA$14m for 70.88m shares. But they sold 135.00k shares for CA$27k. In total, PetroShale insiders bought more than they sold over the last year. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does PetroShale 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PetroShale insiders own about CA$46m worth of shares. That equates to 25% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At PetroShale Tell Us?

It doesn't really mean much that no insider has traded PetroShale shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in PetroShale and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PetroShale. Case in point: We've spotted 3 warning signs for PetroShale you should be aware of, and 2 of them don't sit too well with us.

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, but not derivative transactions.

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.

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

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting