Yahoo Finance Bullish Matador Resources Company (NYSE:MTDR) insiders were rewarded last week as their US$516k investment inflated to US$592k
Matador Resources Company (NYSE:MTDR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 4.3% resulting in a US$255m addition to the company’s market value. As a result, the stock they originally bought for US$516k is now worth US$592k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Matador Resources
The Last 12 Months Of Insider Transactions At Matador Resources
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director Timothy Parker for US$196k worth of shares, at about US$43.52 per share. We do like to see buying, but this purchase was made at well below the current price of US$52.31. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Matador Resources insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Matador Resources Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Matador Resources. In total, insiders bought US$494k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Matador Resources Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Matador Resources insiders own 6.0% of the company, worth about US$373m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Matador Resources Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Matador Resources. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Matador Resources.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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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.
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