President Jonathan McKenzie Sold A Bunch Of Shares In Cenovus Energy
We wouldn't blame Cenovus Energy Inc. (TSE:CVE) shareholders if they were a little worried about the fact that Jonathan McKenzie, the President recently netted about CA$13m selling shares at an average price of CA$42.28. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Cenovus Energy
Notably, that recent sale by Jonathan McKenzie is the biggest insider sale of Cenovus Energy shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of CA$42.27. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 3.09k shares worth CA$73k. But they sold 554.00k shares for CA$21m. In total, Cenovus Energy insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) 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!
See our latest analysis for Cenovus Energy
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does Cenovus Energy Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cenovus Energy insiders own 0.2% of the company, worth about CA$149m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Cenovus Energy Insiders?
An insider sold Cenovus Energy shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Cenovus Energy is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Cenovus Energy is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
But note: Cenovus 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.
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.