Some Canadian Natural Resources Limited (TSE:CNQ) shareholders may be a little concerned to see that the Executive Chairman, Norman Edwards, recently sold a substantial CA$28m worth of stock at a price of CA$70.29 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.9%.
The Last 12 Months Of Insider Transactions At Canadian Natural Resources
Notably, that recent sale by Executive Chairman Norman Edwards was not the only time they sold Canadian Natural Resources shares this year. They previously made an even bigger sale of -CA$33m worth of shares at a price of CA$66.20 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$70.81. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 1.2% of Norman Edwards's holding.
In the last twelve months insiders purchased 4.70k shares for CA$237k. But insiders sold 1.03m shares worth CA$68m. In total, Canadian Natural Resources insiders sold more than they bought over the last year. 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!
See our latest analysis for Canadian Natural Resources
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Insider Ownership Of Canadian Natural Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Canadian Natural Resources insiders own 2.2% of the company, currently worth about CA$3.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Canadian Natural Resources Tell Us?
The stark truth for Canadian Natural Resources is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Canadian Natural Resources is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. At Simply Wall St, we've found that Canadian Natural Resources has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
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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.