Have Calfrac Well Services Insiders Been Selling Stock?
We wouldn't blame Calfrac Well Services Ltd. (TSE:CFW) shareholders if they were a little worried about the fact that Charles Pellerin, the Lead Director recently netted about CA$1.5m selling shares at an average price of CA$7.03. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.4%.
The Last 12 Months Of Insider Transactions At Calfrac Well Services
Notably, that recent sale by Lead Director Charles Pellerin was not the only time they traded Calfrac Well Services shares this year. They previously purchased CA$2.3m worth of shares at a price of CA$3.15 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$6.98), we still think insider buying is a positive. 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.
Over the last year, we can see that insiders have bought 898.89k shares worth CA$2.9m. But they sold 246.46k shares for CA$1.7m. In total, Calfrac Well Services insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Calfrac Well Services
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).
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. It appears that Calfrac Well Services insiders own 18% of the company, worth about CA$129m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Calfrac Well Services Tell Us?
The stark truth for Calfrac Well Services is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Calfrac Well Services and understanding them should be part of your investment process.
Of course Calfrac Well Services 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.