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We often see insiders buying up shares in companies that perform well over the long term. 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 we’ll take a look at whether insiders have been buying or selling shares in Pioneer Energy Services Corp. (NYSE:PES).
What Is Insider Buying?
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 equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Pioneer Energy Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Director C. Thompson for US$74k worth of shares, at about US$3.01 per share. That is hardly a positive sign, even though it took place above the latest price (US$1.67). So it is hard to draw any strong conclusion from it. C. Thompson was the only individual insider to sell shares in the last twelve months.
C. Thompson sold a total of 64.67k shares over the year at an average price of US$3.26. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Pioneer Energy Services Boast High 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. Based on our data, Pioneer Energy Services insiders have about 3.4% of the stock, worth approximately US$4.4m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Pioneer Energy Services Tell Us?
It doesn’t really mean much that no insider has traded Pioneer Energy Services shares in the last quarter. Our analysis of Pioneer Energy Services insider transactions leaves us unenthusiastic. And we’re not picking up on high enough insider ownership to give us any comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Pioneer Energy Services.
But note: Pioneer Energy Services 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.
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.