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Trade Alert: Thomas Ricks At Ovintiv Inc. (TSE:OVV), Has Just Spent US$325k Buying Shares

Simply Wall St
·3 mins read

Potential Ovintiv Inc. (TSE:OVV) shareholders may wish to note that insider Thomas Ricks recently bought CA$325k worth of stock, paying CA$20.97 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 30%.

View our latest analysis for Ovintiv

The Last 12 Months Of Insider Transactions At Ovintiv

Over the last year, we can see that the biggest insider purchase was by Independent Director Bruce Waterman for CA$339k worth of shares, at about CA$33.88 per share. That means that even when the share price was higher than CA$14.66 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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$2.8m for 101.95k shares. But insiders sold 3200 shares worth CA$158k. In the last twelve months there was more buying than selling by Ovintiv insiders. They paid about CA$27.71 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:OVV Recent Insider Trading, February 28th 2020
TSX:OVV Recent Insider Trading, February 28th 2020

Ovintiv is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Ovintiv

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$4.0m worth of Ovintiv stock, about 0.1% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Ovintiv Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ovintiv stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

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.

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. Thank you for reading.