When an individual insider buys shares, it’s usually not a big deal. However, if several insiders buy shares, such as: Total Energy Services Inc (TSE:TOT), for example, is good news for shareholders.
While we would never suggest that investors base their decisions solely on the actions of a company’s directors, we would think it would be foolish to ignore insider transactions entirely.
Check out our latest analysis for Total Energy Services
The last 12 months of insider transactions at Total Energy Services
We can see that President Daniel Halyk made the largest insider purchase last year for shares worth C$153,000, or about C$8.37 per share. This means that an insider was happy to buy shares at a price above the current price of C$7.75. It’s entirely possible that they regret the purchase, but it’s more likely that they’re optimistic about the company. We always pay careful attention to the price that insiders pay when buying shares. Generally, we notice when insiders have bought shares at a price higher than the current price, as this suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that insiders paid CA$795k for 93.22k shares in the last year. But insiders sold 5,000 shares worth CA$43,000. Overall, Total Energy Services insiders have been net buyers over the last year. You can see the insider transactions (by companies and individuals) over the last year in the table below. If you want to know exactly who sold how much and when, just click on the graphic below!
Total Energy Services isn’t the only stock insiders are buying. For those who like to find successful investments The free A list of growing companies with recent insider purchases might be just the ticket.
Total Energy Services insiders recently bought shares
In the last quarter, Total Energy Services insiders spent a significant amount on shares. In total, three insiders paid 91,000 Canadian dollars for shares in the company – and none sold. This shows some optimism about the future of the company.
I like to look at how many shares insiders own in a company to get an idea of how aligned they are with insiders. Typically, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the company for the long term. It appears that Total Energy Services insiders own 7.9% of the company, worth about CA$25m. This level of insider ownership is good, but not particularly outstanding. It certainly suggests a reasonable level of alignment.
So what do Total Energy Services’ insider transactions suggest?
Recent insider buying is encouraging. And the longer-term insider trading also gives us confidence. Insiders likely see value in Total Energy Services shares given these transactions (along with the company’s notable insider ownership). In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks facing Total Energy Services. For example – Total Energy Services has 1 warning sign We think you should be aware of this.
Naturally, You might find a fantastic investment if you look elsewhere. So take a look free List of interesting companies.
Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.