Chief Sustainability Officer & Senior VP of Stakeholder Engagement Rhona Delfrari Just Bought 40% More Shares In Cenovus Energy Inc. (TSE:CVE)
Whilst it may not be a huge deal, we thought it was good to see that the Cenovus Energy Inc. (TSE:CVE) Chief Sustainability Officer & Senior VP of Stakeholder Engagement, Rhona Delfrari, recently bought CA$56k worth of stock, for CA$8.65 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 40%.
See our latest analysis for Cenovus Energy
Cenovus Energy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Alexander Pourbaix for CA$502k worth of shares, at about CA$9.04 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$8.57). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Cenovus Energy insiders bought shares during the last year, they didn't sell. The average buy price was around CA$5.78. It is certainly positive to see 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Cenovus Energy 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.
Insider Ownership of Cenovus Energy
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. It appears that Cenovus Energy insiders own 0.1% of the company, worth about CA$24m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Cenovus Energy Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Cenovus Energy 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 Cenovus Energy. Be aware that Cenovus Energy is showing 3 warning signs in our investment analysis, and 2 of those are potentially serious...
Of course Cenovus Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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. 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.
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