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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Crew Energy Inc. (TSE:CR), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Crew Energy Insider Transactions Over The Last Year
Senior VP & CFO John Leach made the biggest insider purchase in the last 12 months. That single transaction was for CA$378k worth of shares at a price of CA$1.51 each. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. We generally consider it a positive if insiders have been buying on market, even above the current price. Notably John Leach was also the biggest seller, having sold CA$428k worth of shares.
Happily, we note that in the last year insiders paid CA$761k for 439.67k shares. On the other hand they divested 279.13k shares, for CA$428k. In the last twelve months there was more buying than selling by Crew Energy insiders. Their average price was about CA$1.73. These transactions suggest that insiders have considered the current price of CA$0.88 attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Crew Energy Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Crew Energy insiders own 5.3% of the company, worth about CA$7.0m. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Crew Energy Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Crew Energy insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Crew Energy.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.