Yahoo Finance Chairman & CEO of HighPeak Energy Jack Hightower Buys 2.8% More Shares
Those following along with HighPeak Energy, Inc. (NASDAQ:HPK) will no doubt be intrigued by the recent purchase of shares by Jack Hightower, Chairman & CEO of the company, who spent a stonking US$2.0m on stock at an average price of US$15.45. 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 2.8%.
View our latest analysis for HighPeak Energy
The Last 12 Months Of Insider Transactions At HighPeak Energy
Notably, that recent purchase by Chairman & CEO Jack Hightower was not the only time they bought HighPeak Energy shares this year. They previously made an even bigger purchase of US$8.3m worth of shares at a price of US$16.59 per share. That means that even when the share price was higher than US$16.08 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 956.79k shares for US$15m. But they sold 3.62k shares for US$52k. In the last twelve months there was more buying than selling by HighPeak Energy insiders. 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 undervalued small cap companies that insiders are buying.
Does HighPeak Energy Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that HighPeak Energy insiders own 17% of the company, worth about US$340m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The HighPeak Energy Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about HighPeak Energy. 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. At Simply Wall St, we've found that HighPeak Energy has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
