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Insiders who bought US$626.1k worth of Petro-Victory Energy Corp. (CVE:VRY) stock in the last year have seen some of their losses recouped as the stock gained 10% last week. However, total losses seen by insiders are still US$322k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Petro-Victory Energy
Petro-Victory Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Thomas Bryant bought CA$600k worth of shares at a price of CA$2.00 per share. That means that an insider was happy to buy shares at above the current price of CA$0.95. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid CA$626k for 320.35k shares. But insiders sold 300.00k shares worth CA$600k. In total, Petro-Victory Energy insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Petro-Victory Energy insiders own 23% of the company, worth about CA$4.5m. 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 Do The Petro-Victory Energy Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Petro-Victory Energy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Petro-Victory Energy insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Petro-Victory Energy. To that end, you should learn about the 6 warning signs we've spotted with Petro-Victory Energy (including 4 which are potentially serious).