Insider Buying: Thomas Claugus Just Spent CA$323k On Pipestone Energy Corp. (TSE:PIPE) Shares
Potential Pipestone Energy Corp. (TSE:PIPE) shareholders may wish to note that insider Thomas Claugus recently bought CA$323k worth of stock, paying CA$3.20 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.9%.
View our latest analysis for Pipestone Energy
The Last 12 Months Of Insider Transactions At Pipestone Energy
In fact, the recent purchase by Thomas Claugus was the biggest purchase of Pipestone Energy shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$2.90 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 190.85k shares for CA$562k. On the other hand they divested 20.00k shares, for CA$107k. Overall, Pipestone Energy insiders were net buyers during the last year. Their average price was about CA$2.94. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Pipestone Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Pipestone Energy insiders own 2.2% of the company, worth about CA$18m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Pipestone Energy Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Pipestone Energy we think they are probably pretty confident of a bright future. While we like knowing 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. Every company has risks, and we've spotted 2 warning signs for Pipestone Energy you should know about.
Of course Pipestone Energy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
