Greenfire Resources Insiders Placed Bullish Bets Worth CA$24.1m

In the last year, multiple insiders have substantially increased their holdings of Greenfire Resources Ltd. (NYSE:GFR) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Greenfire Resources

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Adam Waterous bought US$23m worth of shares at a price of US$4.68 per share. Even though the purchase was made at a significantly lower price than the recent price (US$5.88), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Greenfire Resources insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and 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!

View our latest analysis for Greenfire Resources

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Greenfire Resources Have Bought Stock Recently

It's good to see that Greenfire Resources insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$24m for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Greenfire Resources insiders own 1.1% of the company, worth about US$8.1m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Greenfire Resources Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Greenfire Resources insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Greenfire Resources you should be aware of.

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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.