Pembina Pipeline Corporation (TSE:PPL) shareholders (or potential shareholders) will be happy to see that the President, Michael Dilger, recently bought a whopping CA$791k worth of stock, at a price of CA$31.62. While that only increased their holding size by 10.0%, it is still a big swing by our standards.
Pembina Pipeline Insider Transactions Over The Last Year
Notably, that recent purchase by President Michael Dilger was not the only time they bought Pembina Pipeline shares this year. They previously made an even bigger purchase of CA$2.5m worth of shares at a price of CA$49.22 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$32.56). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Michael Dilger was also the biggest seller.
Over the last year, we can see that insiders have bought 84.60k shares worth CA$3.5m. But insiders sold 40167 shares worth CA$2.0m. In total, Pembina Pipeline insiders bought more than they sold over the last year. Their average price was about CA$41.81. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Pembina Pipeline is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Pembina Pipeline
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Pembina Pipeline insiders own about CA$37m worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Pembina Pipeline Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Pembina Pipeline shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Pembina Pipeline you should know about.
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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