Trade Alert: The Independent Director Of Tamarack Valley Energy Ltd (TSE:TVE), Marnie Smith, Has Just Spent CA$79k Buying A Few More Shares
Even if it's not a huge purchase, we think it was good to see that Marnie Smith, the Independent Director of Tamarack Valley Energy Ltd (TSE:TVE) recently shelled out CA$79k to buy stock, at CA$0.87 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Tamarack Valley Energy
The Last 12 Months Of Insider Transactions At Tamarack Valley Energy
In the last twelve months, the biggest single purchase by an insider was when VP of Finance & CFO Steve Buytels bought CA$178k worth of shares at a price of CA$0.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.86). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid CA$912k for 976.59k shares. But they sold 59.90k shares for CA$101k. In the last twelve months there was more buying than selling by Tamarack Valley Energy insiders. You can see a visual depiction of insider transactions (by companies and 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!
Tamarack Valley 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 Tamarack Valley Energy
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Tamarack Valley Energy insiders own about CA$7.5m worth of shares (which is 3.9% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Tamarack Valley Energy Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Tamarack Valley Energy insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Tamarack Valley Energy you should be aware of.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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