How Much Are Stampede Drilling Inc. (CVE:SDI) Insiders Spending On Buying Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Stampede Drilling Inc. (CVE:SDI).
Do Insider Transactions Matter?
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.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.
Check out our latest analysis for Stampede Drilling
The Last 12 Months Of Insider Transactions At Stampede Drilling
Director Elson McDougald made the biggest insider purchase in the last 12 months. That single transaction was for CA$111k worth of shares at a price of CA$0.17 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.21. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 1.3m shares for CA$240k. But they sold 81000 for CA$23k. In the last twelve months there was more buying than selling by Stampede Drilling insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Stampede Drilling is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Stampede Drilling Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider buying at Stampede Drilling. In total, insiders bought CA$14k worth of shares in that time. But Independent Director Rodger Hawkins sold CA$3.1k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership of Stampede Drilling
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.8% of Stampede Drilling shares, worth about CA$1.9m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Stampede Drilling Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Stampede Drilling insiders are doubting the company. Along with insider transactions, I recommend checking if Stampede Drilling 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.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.
