Yahoo Finance Great news for Saturn Oil & Gas Inc. (CVE:SOIL): Insiders acquired stock in large numbers last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Saturn Oil & Gas Inc. (CVE:SOIL), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Saturn Oil & Gas
The Last 12 Months Of Insider Transactions At Saturn Oil & Gas
The Senior Vice President of Exploration Justin Kaufmann made the biggest insider purchase in the last 12 months. That single transaction was for CA$75k worth of shares at a price of CA$3.00 each. That means that even when the share price was higher than CA$2.36 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Saturn Oil & Gas insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Saturn Oil & Gas is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Saturn Oil & Gas
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. Based on our data, Saturn Oil & Gas insiders have about 0.9% of the stock, worth approximately CA$1.3m. We consider this fairly low insider ownership.
So What Do The Saturn Oil & Gas Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Saturn Oil & Gas stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Saturn Oil & Gas has 5 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course Saturn Oil & Gas 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.
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