Investors who take an interest in Noble Energy, Inc. (NYSE:NBL) should definitely note that the Lead Independent Director, Scott Urban, recently paid US$20.38 per share to buy US$306k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 31%.
Noble Energy Insider Transactions Over The Last Year
Notably, that recent purchase by Scott Urban is the biggest insider purchase of Noble Energy shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$20.91. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Noble Energy share holders is that an insider was buying at near the current price. Scott Urban was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Noble Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Noble Energy
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Noble Energy insiders own 1.2% of the company, worth about US$115m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Noble Energy Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Noble Energy. Looks promising! Of course, the future is what matters most. So if you are interested in Noble Energy, you should check out this free report on analyst forecasts for the company.
Of course Noble Energy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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