Yahoo Finance Pennine Petroleum Corporation (CVE:PNN) Insiders Increased Their Holdings
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 before you buy or sell Pennine Petroleum Corporation (CVE:PNN), you may well want to know whether insiders have been buying or selling.
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.’
View our latest analysis for Pennine Petroleum
Pennine Petroleum Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
Happily, we note that in the last year insiders paid CA$225k for 4.44m shares. But they sold 1.36m for CA$53k. Overall, Pennine Petroleum insiders were net buyers last year. Their average price was about CA$0.051. These transactions suggest that insiders have considered the current price of CA$0.015 attractive. You can see a visual depiction of insider transactions over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Pennine Petroleum is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Pennine Petroleum Insiders Bought Stock Recently
There was some insider buying at Pennine Petroleum over the last quarter. Insiders bought CA$49k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Pennine Petroleum 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Pennine Petroleum insiders own about CA$574k worth of shares (which is 23% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Pennine Petroleum Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But overall the difference isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Pennine Petroleum and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
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.
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.
