Have Insiders Been Buying Pembina Pipeline Corporation (TSE:PPL) Shares?
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 we’ll take a look at whether insiders have been buying or selling shares in Pembina Pipeline Corporation (TSE:PPL).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
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. 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.’
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Pembina Pipeline Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Anne-Marie Ainsworth bought CA$328k worth of shares at a price of CA$37.22 per share. That means that an insider was happy to buy shares at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Happily, we note that in the last year insiders paid CA$819k for 20.11k shares. On the other hand they divested 1.41k shares, for CA$60k. In total, Pembina Pipeline insiders bought more than they sold over the last year. They paid about CA$40.73 on average. Although they bought at below the recent price of CA$43.54 per share, it is good to see that insiders are willing to invest in the company. 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 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.
Pembina Pipeline Insiders Bought Stock Recently
Over the last three months, we’ve seen significantly more insider buying, than insider selling, at Pembina Pipeline. In total, 3 insiders bought CA$278k worth of shares in that time. But Robert Michaleski sold shares worth CA$24k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pembina Pipeline insiders own about CA$66m worth of shares. That equates to 0.3% 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.
So What Does This Data Suggest About Pembina Pipeline Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Pembina Pipeline insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Pembina Pipeline, you should check out this free report on analyst forecasts for the company.
Of course Pembina Pipeline may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 editorial-team@simplywallst.com.
