We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Sable Resources Ltd. (CVE:SAE).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. 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 it is perfectly logical to keep tabs on what insiders are doing. 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'.
Sable Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Brent Gilchrist bought CA$150k worth of shares at a price of CA$0.15 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.09). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 3.64m shares for CA$494k. On the other hand they divested 1800000 shares, for CA$192k. Overall, Sable Resources insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Sable Resources 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.
Insiders at Sable Resources Have Sold Stock Recently
There was substantially more insider selling, than buying, of Sable Resources shares over the last three months. We note insider John Burzynski cashed in CA$132k worth of shares. Meanwhile insiders bought CA$14k worth. Generally this level of net selling might be considered a bit bearish.
Does Sable Resources Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of Sable Resources shares, worth about CA$2.0m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Sable Resources Tell Us?
Unfortunately, there has been more insider selling of Sable Resources stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. But insiders own relatively little of the company, from what we can see. So the company doesn't look great on this analysis. Along with insider transactions, I recommend checking if Sable Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.