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Who Has Been Buying CNX Resources Corporation (NYSE:CNX) Shares?

Simply Wall St

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 CNX Resources Corporation (NYSE:CNX).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

View our latest analysis for CNX Resources

The Last 12 Months Of Insider Transactions At CNX Resources

Over the last year, we can see that the biggest insider purchase was by Independent Director John Clarkson for US$140k worth of shares, at about US$6.98 per share. That implies that an insider found the current price of US$7.43 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for CNX Resources share holders is that an insider was buying at near the current price. John Clarkson was the only individual insider to buy over the year.

John Clarkson bought 40.00k shares over the last 12 months at an average price of US$7.12. You can see the insider transactions (by individuals) 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!

NYSE:CNX Recent Insider Trading, December 15th 2019

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of CNX Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.1% of CNX Resources shares, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About CNX Resources Insiders?

It doesn't really mean much that no insider has traded CNX Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in CNX Resources and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in CNX Resources, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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