Yahoo Finance Read This Before Buying Concho Resources Inc. (NYSE:CXO) Shares
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Concho Resources Inc. (NYSE:CXO).
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.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Concho Resources
The Last 12 Months Of Insider Transactions At Concho Resources
Over the last year, we can see that the biggest insider sale was by the Chairman of the Board & CEO, Timothy Leach, for US$6.0m worth of shares, at about US$109 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$63.10). So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 25200 shares worth US$1.8m. But they sold 66245 for US$7.2m. All up, insiders sold more shares in Concho Resources than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Concho Resources Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Concho Resources. In total, insiders bought US$1.6m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
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. Concho Resources insiders own 1.1% of the company, currently worth about US$134m based on the recent share price. 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 Concho Resources Insiders?
It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders , suggests they are well aligned and optimistic. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Concho Resources.
Of course Concho Resources 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
