Potential Parex Resources Inc. (TSE:PXT) shareholders may wish to note that the President, Imad Mohsen, recently bought CA$500k worth of stock, paying CA$20.61 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 16%.
Parex Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Wayne Foo, for CA$5.2m worth of shares, at about CA$25.88 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$22.30). So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 57.46k shares worth CA$1.3m. But insiders sold 220.36k shares worth CA$5.7m. Over the last year we saw more insider selling of Parex Resources shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Parex Resources
I will like Parex Resources better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Parex Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It appears that Parex Resources insiders own 0.8% of the company, worth about CA$17m. 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 Parex Resources Insider Transactions Indicate?
It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Parex Resources insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parex Resources. Every company has risks, and we've spotted 1 warning sign for Parex Resources you should know about.
Of course Parex Resources 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 of direct interests only, but not derivative transactions or indirect interests.
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