Despite Tenth Avenue Petroleum Corp.'s recent decline, insiders have made a around CA$50k profit after buying earlier this year.

Insiders who purchased Tenth Avenue Petroleum Corp. (CVE:TPC) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10.0% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of CA$85k is now worth CA$135k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Tenth Avenue Petroleum

Tenth Avenue Petroleum Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Cameron MacDonald for CA$85k worth of shares, at about CA$0.085 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.14. 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.

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!

insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Tenth Avenue Petroleum Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of Tenth Avenue Petroleum shares, worth about CA$749k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tenth Avenue Petroleum Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Tenth Avenue Petroleum shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tenth Avenue Petroleum. In terms of investment risks, we've identified 6 warning signs with Tenth Avenue Petroleum and understanding them should be part of your investment process.

But note: Tenth Avenue Petroleum may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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.