Yahoo Finance Are Insiders Buying Sonoro Energy Ltd. (CVE:SNV) Stock?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Sonoro Energy Ltd. (CVE:SNV), 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, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. 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'.
View our latest analysis for Sonoro Energy
Sonoro Energy Insider Transactions Over The Last Year
insider William Marpe made the biggest insider purchase in the last 12 months. That single transaction was for CA$70k worth of shares at a price of CA$0.03 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 4.50m shares worth CA$135k. But they sold 306666 shares for CA$31k. In the last twelve months there was more buying than selling by Sonoro Energy insiders. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders at Sonoro Energy Have Sold Stock Recently
We have seen a bit of insider selling at Sonoro Energy, over the last three months. Insiders only netted CA$31k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Does Sonoro Energy Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Sonoro Energy insiders own about CA$597k worth of shares (which is 9.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Sonoro Energy Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Sonoro Energy insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sonoro Energy. At Simply Wall St, we've found that Sonoro Energy has 4 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.
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.
