Investors who take an interest in PetroTal Corp. (TSE:TAL) should definitely note that the Independent Director, Gavin Hugh Wilson, recently paid CA$0.49 per share to buy CA$196k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 119%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At PetroTal
Notably, that recent purchase by Gavin Hugh Wilson is the biggest insider purchase of PetroTal shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$0.55. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 1.55m shares for CA$768k. But insiders sold 517.77k shares worth CA$330k. In the last twelve months there was more buying than selling by PetroTal insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for PetroTal
PetroTal is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Our data indicates that PetroTal insiders own about CA$9.1m worth of shares (which is 1.8% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The PetroTal Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on PetroTal stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PetroTal. Case in point: We've spotted 2 warning signs for PetroTal you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.