In This Article:
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Parex Resources Inc.'s (TSE:PXT) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Parex Resources Insider Transactions Over The Last Year
The President Imad Mohsen made the biggest insider purchase in the last 12 months. That single transaction was for CA$252k worth of shares at a price of CA$10.83 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$13.57. 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 Parex Resources insiders bought shares during the last year, they didn't sell. The average buy price was around CA$12.51. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Parex Resources
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Parex Resources Have Bought Stock Recently
Over the last quarter, Parex Resources insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$383k worth of shares. This makes one think the business has some good points.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.7% of Parex Resources shares, worth about CA$22m. 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 Parex Resources 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. When combined with notable insider ownership, these factors suggest Parex Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Parex Resources (including 1 which makes us a bit uncomfortable).