Some Permian Resources Corporation (NYSE:PR) shareholders may be a little concerned to see that the Senior VP & Chief Accounting Officer, Brent Jensen, recently sold a substantial US$3.2m worth of stock at a price of US$14.55 per share. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.
Permian Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Director, Robert Anderson, sold US$5.4m worth of shares at a price of US$13.41 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$15.21. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 21% of Robert Anderson's holding.
Insiders in Permian Resources didn't buy any shares in 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!
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Insider Ownership Of Permian Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Permian Resources insiders own about US$309m worth of shares (which is 2.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Permian Resources Insider Transactions Indicate?
Insiders sold Permian Resources shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing 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. For example - Permian Resources has 4 warning signs we think you should be aware of.
Of course Permian 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 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.