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Investors who take an interest in Calfrac Well Services Ltd. (TSE:CFW) should definitely note that the Independent Director, Charles Pellerin, recently paid CA$4.00 per share to buy CA$581k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.8%.
See our latest analysis for Calfrac Well Services
The Last 12 Months Of Insider Transactions At Calfrac Well Services
Notably, that recent purchase by Independent Director Charles Pellerin was not the only time they bought Calfrac Well Services shares this year. Earlier in the year, they paid CA$4.15 per share in a CA$2.9m purchase. That means that even when the share price was higher than CA$4.03 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 Calfrac Well Services 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Calfrac Well Services Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Calfrac Well Services insiders own 14% of the company, worth about CA$46m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Calfrac Well Services Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Calfrac Well Services shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of 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. To that end, you should learn about the 4 warning signs we've spotted with Calfrac Well Services (including 1 which is concerning).