Potential Matador Resources Company (NYSE:MTDR) shareholders may wish to note that the Founder, Joseph Foran, recently bought US$479k worth of stock, paying US$2.00 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.3%.
Matador Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Joseph Foran is the biggest insider purchase of Matador Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.43). 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Matador Resources insiders were buying shares, but not selling. Their average price was about US$4.92. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Matador Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Matador Resources insiders own about US$8.5m worth of shares (which is 5.1% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Matador Resources Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Matador Resources 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 Matador Resources. While conducting our analysis, we found that Matador Resources has 4 warning signs and it would be unwise to ignore them.
But note: Matador Resources 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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