Yahoo Finance Insiders of Tourmaline Oil Corp. (TSE:TOU) are probably glad they bought last year as their CA$5.9m investment now stands at CA$9.0m
Tourmaline Oil Corp. (TSE:TOU) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 7.0% decline in the stock price. After accounting for the recent loss, the CA$5.9m worth of shares they purchased is now worth CA$9.0m, suggesting a good return on their investment.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Tourmaline Oil
The Last 12 Months Of Insider Transactions At Tourmaline Oil
Notably, that recent purchase by Chairman of the Board Michael Rose was not the only time they bought Tourmaline Oil shares this year. Earlier in the year, they paid CA$69.80 per share in a CA$698k purchase. That implies that an insider found the current price of CA$72.67 per share to be enticing. 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. Happily, the Tourmaline Oil insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid CA$5.9m for 123.86k shares. But they sold 11.48k shares for CA$689k. In the last twelve months there was more buying than selling by Tourmaline Oil insiders. Their average price was about CA$47.38. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders at Tourmaline Oil Have Bought Stock Recently
At Tourmaline Oil,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought CA$1.9m worth of shares. But insider Drew Tumbach sold shares worth CA$689k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Tourmaline Oil Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Tourmaline Oil insiders own about CA$1.5b worth of shares (which is 6.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Tourmaline Oil Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Tourmaline Oil insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 4 warning signs for Tourmaline Oil that deserve your attention before buying any shares.
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, 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.
