Yahoo Finance Did Senex Energy Limited (ASX:SXY) Insiders Sell Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Senex Energy Limited (ASX:SXY).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Senex Energy
The Last 12 Months Of Insider Transactions At Senex Energy
CEO, MD & Director Ian Davies made the biggest insider sale in the last 12 months. That single transaction was for AU$2.0m worth of shares at a price of AU$0.47 each. That means that an insider was selling shares at around the current price of AU$0.36. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. The only individual insider seller over the last year was Ian Davies.
Happily, we note that in the last year insiders paid AU$353k for 864.51k shares. On the other hand they divested 4.39m shares, for AU$2.0m. You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Senex Energy Have Sold Stock Recently
We’ve seen more insider selling than insider buying at Senex Energy recently. In total, Ian Davies sold AU$2.0m worth of shares in that time. Meanwhile insiders bought AU$160k worth. We don’t view these transactions as a positive sign.
Does Senex Energy Boast High Insider Ownership?
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Senex Energy insiders own 2.4% of the company, currently worth about AU$13m based on the recent share price. 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 Senex Energy Insider Transactions Indicate?
The stark truth for Senex Energy is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Senex Energy 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
