Yahoo Finance Have Insiders Been Selling TORC Oil & Gas Ltd. (TSE:TOG) Shares This Year?
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 shareholders might well want to know whether insiders have been buying or selling shares in TORC Oil & Gas Ltd. (TSE:TOG).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for TORC Oil & Gas
The Last 12 Months Of Insider Transactions At TORC Oil & Gas
Vice President of Land Jeremy Wallis made the biggest insider sale in the last 12 months. That single transaction was for CA$281k worth of shares at a price of CA$7.03 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of CA$4.08. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 57.67k shares worth CA$354k. But insiders sold 82.94k shares worth CA$545k. All up, insiders sold more shares in TORC Oil & Gas than they bought, over the last year. They sold for an average price of about CA$6.58. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of CA$4.08. You can see the insider transactions over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does TORC Oil & Gas Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. TORC Oil & Gas insiders own 3.2% of the company, currently worth about CA$30m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At TORC Oil & Gas Tell Us?
It doesn’t really mean much that no insider has traded TORC Oil & Gas shares in the last quarter. We don’t take much encouragement from the transactions by TORC Oil & Gas insiders. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for TORC Oil & Gas.
Of course TORC Oil & Gas may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.