Canada markets close in 1 hour 8 minutes
  • S&P/TSX

    16,282.14
    +51.91 (+0.32%)
     
  • S&P 500

    3,455.00
    +19.44 (+0.57%)
     
  • DOW

    28,386.06
    +175.24 (+0.62%)
     
  • CAD/USD

    0.7608
    -0.0004 (-0.05%)
     
  • CRUDE OIL

    40.63
    +0.60 (+1.50%)
     
  • BTC-CAD

    17,146.61
    +2,601.17 (+17.88%)
     
  • CMC Crypto 200

    263.17
    +7.07 (+2.76%)
     
  • GOLD FUTURES

    1,906.30
    -23.20 (-1.20%)
     
  • RUSSELL 2000

    1,627.67
    +23.89 (+1.49%)
     
  • 10-Yr Bond

    0.8430
    +0.0270 (+3.31%)
     
  • NASDAQ

    11,512.18
    +27.49 (+0.24%)
     
  • VOLATILITY

    27.83
    -0.82 (-2.86%)
     
  • FTSE

    5,785.65
    +9.15 (+0.16%)
     
  • NIKKEI 225

    23,474.27
    -165.19 (-0.70%)
     
  • CAD/EUR

    0.6434
    +0.0021 (+0.33%)
     

Who Has Been Buying Pine Cliff Energy Ltd. (TSE:PNE) Shares?

Simply Wall St
·4 mins read

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Pine Cliff Energy Ltd. (TSE:PNE), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Pine Cliff Energy

Pine Cliff Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board George Fink for CA$500k worth of shares, at about CA$0.23 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

Over the last year, we can see that insiders have bought 12.05m shares worth CA$1.9m. But they sold 302400 shares for CA$52k. Overall, Pine Cliff Energy insiders were net buyers last year. They paid about CA$0.16 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:PNE Recent Insider Trading, February 25th 2020
TSX:PNE Recent Insider Trading, February 25th 2020

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).

Pine Cliff Energy Insiders Bought Stock Recently

It's good to see that Pine Cliff Energy insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$308k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership of Pine Cliff Energy

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Pine Cliff Energy insiders own 24% of the company, worth about CA$9.7m. 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 Pine Cliff Energy Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Pine Cliff Energy insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.