We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares in Antero Resources Corporation (NYSE:AR).
What Is Insider Selling?
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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Antero Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Director, Robert Clark, sold US$262k worth of shares at a price of US$12.80 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The good news is that this large sale was at well above current price of US$8.56. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 96439 shares worth US$809k. But insiders sold 28336 shares worth US$389k. In total, Antero Resources insiders bought more than they sold over the 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!
Antero Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Antero Resources Have Bought Stock Recently
It's good to see that Antero Resources insiders have made notable investments in the company's shares. In total, insiders bought US$809k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Antero 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. We usually like to see fairly high levels of insider ownership. Antero Resources insiders own about US$205m worth of shares (which is 7.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Antero Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Antero Resources. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Antero Resources, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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