Whilst it may not be a huge deal, we thought it was good to see that the Birchcliff Energy Ltd. (TSE:BIR) Non-Independent Director, James Surbey, recently bought CA$102k worth of stock, for CA$1.70 per share. However, we do note that it only increased their holding by 5.9%, and it wasn’t a huge purchase by absolute value, either.
Birchcliff Energy Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Independent Director James Surbey was not their only acquisition of Birchcliff Energy shares this year. They previously made an even bigger purchase of CA$197k worth of shares at a price of CA$2.00 per share. That means that even when the share price was higher than CA$1.73 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Birchcliff Energy insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Birchcliff Energy 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. From looking at our data, insiders own CA$5.4m worth of Birchcliff Energy stock, about 1.2% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Birchcliff Energy Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Birchcliff Energy insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Birchcliff Energy, you should check out this free report on analyst forecasts for the company.
But note: Birchcliff 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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