Some ConocoPhillips (NYSE:COP) shareholders may be a little concerned to see that the Director & Advisor, Timothy Leach, recently sold a substantial US$5.0m worth of stock at a price of US$115 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.1%.
Check out our latest analysis for ConocoPhillips
The Last 12 Months Of Insider Transactions At ConocoPhillips
Notably, that recent sale by Timothy Leach is the biggest insider sale of ConocoPhillips shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$116, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 7.1% of Timothy Leach's stake.
In total, ConocoPhillips insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like ConocoPhillips better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does ConocoPhillips Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that ConocoPhillips insiders own 0.1% of the company, worth about US$158m. 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 ConocoPhillips Insider Transactions Indicate?
Insiders haven't bought ConocoPhillips stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. 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. 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 3 warning signs for ConocoPhillips you should be aware of, and 1 of these is a bit concerning.
But note: ConocoPhillips 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.