Trade Alert: The Vice President of Business Develo...
Whilst it may not be a huge deal, we thought it was good to see that the Peyto Exploration & Development Corp. (TSE:PEY) Vice President of Business Development, Scott Robinson, recently bought CA$58k worth of stock, for CA$2.89 per share. However, it only increased their shares held by 9.0%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Peyto Exploration & Development
Peyto Exploration & Development Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Vice President of Drilling & Completions Lee Curran bought CA$241k worth of shares at a price of CA$3.21 per share. That means that an insider was happy to buy shares at above the current price of CA$2.90. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Peyto Exploration & Development insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Peyto Exploration & Development Boast High Insider Ownership?
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. It appears that Peyto Exploration & Development insiders own 2.8% of the company, worth about CA$14m. 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 Peyto Exploration & Development Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Peyto Exploration & Development shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 1 warning sign for Peyto Exploration & Development you should know about.
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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