Yahoo Finance Insider Buying: The Parex Resources Inc. (TSE:PXT) Independent Director Just Bought 30% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Parex Resources Inc. (TSE:PXT) Independent Director, Sigmund Cornelius, recently bought CA$91k worth of stock, for CA$18.21 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 30%.
View our latest analysis for Parex Resources
Parex Resources Insider Transactions Over The Last Year
The Lead Independent Director, Robert Engbloom, made the biggest insider sale in the last 12 months. That single transaction was for CA$276k worth of shares at a price of CA$27.80 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$18.63. So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 41.75k shares worth CA$920k. But they sold 16.00k shares for CA$444k. In total, Parex Resources insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and 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!
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 Parex Resources Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Parex Resources insiders own 2.0% of the company, worth about CA$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Parex Resources Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Parex Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parex Resources. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Parex Resources.
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.
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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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