ConocoPhillips' (NYSE:COP)) market cap declines to US$117b but insiders who sold US$5.3m stock were able to hedge their losses

·3 min read

Over the past year, insiders sold US$5.3m worth of ConocoPhillips (NYSE:COP) stock at an average price of US$104 per share allowing them to get the most out of their money. The company's market valuation decreased by US$5.5b after the stock price dropped 4.5% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for ConocoPhillips

ConocoPhillips Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director & Advisor, Timothy Leach, sold US$4.2m worth of shares at a price of US$102 per share. So we know that an insider sold shares at around the present share price of US$96.16. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, ConocoPhillips insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) 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!


If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

ConocoPhillips Insiders Bought Stock Recently

It's good to see that ConocoPhillips insiders have made notable investments in the company's shares. We can see that Independent Director Robert Walker paid US$1.2m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. ConocoPhillips insiders own about US$118m worth of shares (which is 0.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The ConocoPhillips Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, ConocoPhillips insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ConocoPhillips. Case in point: We've spotted 2 warning signs for ConocoPhillips you should be aware of, and 1 of them doesn't sit too well with us.

But note: ConocoPhillips may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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