Potential SilverBow Resources, Inc. (NYSE:SBOW) shareholders may wish to note that the Independent Chairman of the Board, Marcus Rowland, recently bought US$158k worth of stock, paying US$31.51 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 25%.
See our latest analysis for SilverBow Resources
SilverBow Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman of the Board Marcus Rowland was not the only time they bought SilverBow Resources shares this year. They previously made an even bigger purchase of US$370k worth of shares at a price of US$37.00 per share. That means that even when the share price was higher than US$31.80 (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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Marcus Rowland was the only individual insider to buy shares in the last twelve months. Notably Marcus Rowland was also the biggest seller.
Marcus Rowland bought 15.00k shares over the last 12 months at an average price of US$35.17. 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. 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).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.8% of SilverBow Resources shares, worth about US$23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The SilverBow Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest SilverBow Resources insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for SilverBow Resources you should be aware of, and 1 of them is a bit unpleasant.