It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Condor Petroleum Inc. (TSE:CPI).
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, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Condor Petroleum Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer William Hatcher for CA$67k worth of shares, at about CA$0.27 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 511500 shares worth CA$136k. On the other hand they divested 200250 shares, for CA$47k. In the last twelve months there was more buying than selling by Condor Petroleum insiders. You can see a visual depiction of insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Condor Petroleum Insiders Bought Stock Recently
We saw some Condor Petroleum insider buying shares in the last three months. insider Robert Disbrow shelled out CA$64k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership of Condor Petroleum
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. Condor Petroleum insiders own about CA$3.0m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Condor Petroleum Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Condor Petroleum insiders are well aligned, and that they may think the share price is too low. Along with insider transactions, I recommend checking if Condor Petroleum is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Condor Petroleum 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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