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Quite a few insiders have dramatically grown their holdings in International Petroleum Corporation (TSE:IPCO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for International Petroleum
The Last 12 Months Of Insider Transactions At International Petroleum
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Christophe Nerguararian bought CA$2.0m worth of shares at a price of CA$14.93 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$18.61. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While International Petroleum insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!
International Petroleum is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At International Petroleum Have Bought Stock Recently
Over the last quarter, International Petroleum insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$157k worth of shares. That shows some optimism about the company's future.
Does International Petroleum Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.7% of International Petroleum shares, worth about CA$81m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About International Petroleum Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of International Petroleum we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we found 1 warning sign for International Petroleum that deserve your attention before buying any shares.