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Insiders who bought HighPeak Energy, Inc. (NASDAQ:HPK) in the last 12 months may probably not pay attention to the stock's recent 22% drop. Reason being, despite the recent loss, insiders original purchase value of US$521k is now worth US$1.4m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
HighPeak Energy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President & Director Michael Hollis for US$455k worth of shares, at about US$10.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$27.86. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Michael Hollis purchased 50.46k shares over the year. The average price per share was US$10.32. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
HighPeak Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. HighPeak Energy insiders own about US$246m worth of shares (which is 7.8% of the company). 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 Does This Data Suggest About HighPeak Energy Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like HighPeak Energy insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HighPeak Energy. To that end, you should learn about the 4 warning signs we've spotted with HighPeak Energy (including 1 which is a bit concerning).
Of course HighPeak Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.