Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in WPX Energy, Inc. (NYSE:WPX).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
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.’
WPX Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when President & COO Clay Gaspar sold US$992k worth of shares at a price of US$18.03 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$12.89. So it is hard to draw any strong conclusion from it. Notably Clay Gaspar was also the biggest buyer, having purchased US$646 worth of shares.
All up, insiders sold more shares in WPX Energy than they bought, over the last year. The sellers received a price of around US$18.24, on average. Insider selling doesn’t make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$12.89. 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Are WPX Energy Insiders Buying Or Selling?
We saw President & COO Clay Gaspar buy shares worth US$646 in the last three months. But that was only a smidgen more than the US$16.1 worth of sales. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Insider Ownership of WPX Energy
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. WPX Energy insiders own about US$46m worth of shares. That equates to 0.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The WPX Energy Insider Transactions Indicate?
We note a that there has been a tad more insider buying than selling, recently. But the difference isn’t much. We’re a little cautious about the insider selling at WPX Energy. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in WPX Energy, you should check out this free report on analyst forecasts for the company.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.