Yahoo Finance The Chairman of the Board of Tourmaline Oil Corp. (TSE:TOU), Michael Rose, Just Bought A Few More Shares
Those following along with Tourmaline Oil Corp. (TSE:TOU) will no doubt be intrigued by the recent purchase of shares by Michael Rose, Chairman of the Board of the company, who spent a stonking CA$763k on stock at an average price of CA$76.27. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.06%.
View our latest analysis for Tourmaline Oil
The Last 12 Months Of Insider Transactions At Tourmaline Oil
In fact, the recent purchase by Michael Rose was the biggest purchase of Tourmaline Oil shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$80.32 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Tourmaline Oil share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 111.82k shares for CA$6.7m. On the other hand they divested 11.48k shares, for CA$689k. In total, Tourmaline Oil insiders bought more than they sold over the last year. They paid about CA$60.30 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below 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.
Insider Ownership Of Tourmaline Oil
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Tourmaline Oil insiders own about CA$1.7b worth of shares (which is 6.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Tourmaline Oil Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tourmaline Oil. One for the watchlist, at least! While we like knowing 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. When we did our research, we found 4 warning signs for Tourmaline Oil (2 don't sit too well with us!) that we believe deserve your full attention.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
