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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Arrow Exploration Corp. (CVE:AXL).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
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.'
See our latest analysis for Arrow Exploration
Arrow Exploration Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President & Director H. McDonald for CA$102k worth of shares, at about CA$0.30 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.39), we still think insider buying is a positive. But because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 905k shares worth CA$301k. While Arrow Exploration insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders at Arrow Exploration Have Bought Stock Recently
Over the last quarter, Arrow Exploration insiders have spent a meaningful amount on shares. In total, insiders bought US$248k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Arrow Exploration
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. From our data, it seems that Arrow Exploration insiders own 9.0% of the company, worth about CA$2.4m. Whilst better than nothing, we're not overly impressed by these holdings.