Canada markets open in 8 hours 1 minute

Insider Buying: The Gibson Energy Inc. (TSE:GEI) Independent Chairman Just Bought CA$82k Worth Of Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that James Estey, the Independent Chairman of Gibson Energy Inc. (TSE:GEI) recently shelled out CA$82k to buy stock, at CA$20.55 per share. That might not be a big purchase but it only increased their holding by 2.1%, and could be interpreted as a good sign.

See our latest analysis for Gibson Energy

Gibson Energy Insider Transactions Over The Last Year

insider Susan Jones made the biggest insider purchase in the last 12 months. That single transaction was for CA$150k worth of shares at a price of CA$21.95 each. That means that even when the share price was higher than CA$19.14 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 10.82k shares worth CA$232k. On the other hand they divested 150 shares, for CA$3.8k. Overall, Gibson Energy insiders were net buyers last year. 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:GEI Recent Insider Trading, March 11th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Gibson 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of Gibson Energy shares, worth about CA$12m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Gibson Energy Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Gibson Energy insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 3 warning signs we've spotted with Gibson Energy (including 1 which is concerning).

Of course Gibson Energy 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.

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.