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Insiders who bought Peyto Exploration & Development Corp. (TSE:PEY) stock lover the last 12 months are probably not as affected by last week’s 10% loss. Even after accounting for the recent loss, the CA$5.5m worth of stock purchased by them is now worth CA$6.4m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Peyto Exploration & Development
In the last twelve months, the biggest single sale by an insider was when the Vice President of Production, Todd Burdick, sold CA$374k worth of shares at a price of CA$14.18 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$11.95. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 537.89k shares for CA$5.5m. On the other hand they divested 87.33k shares, for CA$968k. In total, Peyto Exploration & Development insiders bought more than they sold over the last year. They paid about CA$10.21 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Peyto Exploration & Development 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.
Peyto Exploration & Development Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Peyto Exploration & Development. Insiders spent CA$1.1m on shares. On the other hand, insiders netted CA$400k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership of Peyto Exploration & Development
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 3.3% of Peyto Exploration & Development shares, worth about CA$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Peyto Exploration & Development Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Peyto Exploration & Development 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 Peyto Exploration & Development. For instance, we've identified 5 warning signs for Peyto Exploration & Development (1 is concerning) you should be aware of.
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.