Have Insiders Been Buying Horizon Petroleum Ltd. (CVE:HPL) Shares?
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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. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Horizon Petroleum Ltd. (CVE:HPL), 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, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Horizon Petroleum
The Last 12 Months Of Insider Transactions At Horizon Petroleum
President David Winter made the biggest insider purchase in the last 12 months. That single transaction was for CA$75k worth of shares at a price of CA$0.05 each. That implies that an insider found the current price of CA$0.055 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Horizon Petroleum insiders decided to buy shares at close to current prices.
In the last twelve months insiders paid CA$198k for 4.0m shares purchased. In the last twelve months Horizon Petroleum insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Horizon Petroleum is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Horizon Petroleum
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. Our data indicates that Horizon Petroleum insiders own about CA$287k worth of shares (which is 8.7% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Horizon Petroleum Insiders?
It doesn't really mean much that no insider has traded Horizon Petroleum shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Horizon Petroleum stock. Along with insider transactions, I recommend checking if Horizon Petroleum is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Horizon 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
