Yahoo Finance David Seaton Just Bought 2400% More Shares In ConocoPhillips (NYSE:COP)
Even if it's not a huge purchase, we think it was good to see that David Seaton, a ConocoPhillips (NYSE:COP) insider, recently shelled out US$98k to buy stock, at US$41.03 per share. While that isn't the hugest buy, it actually boosted their shareholding by 2400%, which is good to see.
See our latest analysis for ConocoPhillips
ConocoPhillips Insider Transactions Over The Last Year
Notably, that recent purchase by David Seaton is the biggest insider purchase of ConocoPhillips shares that we've seen in the last year. That means that even when the share price was higher than US$40.87 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was David Seaton.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
ConocoPhillips is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.09% of ConocoPhillips shares, worth about US$41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The ConocoPhillips Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of ConocoPhillips we think they are probably pretty confident of a bright future. 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. For example - ConocoPhillips has 4 warning signs we think you should be aware of.
But note: ConocoPhillips 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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