Some ConocoPhillips (NYSE:COP) shareholders may be a little concerned to see that the Senior VP of Legal, Kelly Rose, recently sold a substantial US$2.0m worth of stock at a price of US$135 per share. That diminished their holding by a very significant 59%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At ConocoPhillips
In the last twelve months, the biggest single sale by an insider was when the President, Ryan Lance, sold US$15m worth of shares at a price of US$133 per share. That means that an insider was selling shares at below the current price (US$135). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of Ryan Lance's stake.
In total, ConocoPhillips insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for ConocoPhillips
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Insider Ownership Of ConocoPhillips
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that ConocoPhillips insiders own 0.09% of the company, worth about US$138m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About ConocoPhillips Insiders?
Insiders sold ConocoPhillips shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since ConocoPhillips is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that ConocoPhillips has 2 warning signs and it would be unwise to ignore them.
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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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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.