Viewing insider transactions for California Resources Corporation's (NYSE:CRC ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

California Resources Insider Transactions Over The Last Year

The Non-Executive Director, Mark McFarland, made the biggest insider sale in the last 12 months. That single transaction was for US$8.5m worth of shares at a price of US$47.52 each. That means that an insider was selling shares at slightly below the current price (US$50.99). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 57% of Mark McFarland's stake. Mark McFarland was the only individual insider to sell over the last year.

Mark McFarland sold a total of 235.00k shares over the year at an average price of US$47.26. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

California Resources Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of California Resources shares over the last three months. In total, Non-Executive Director Mark McFarland sold US$11m worth of shares in that time. Meanwhile Independent Director William Roby bought US$18k worth , as we said above . Generally this level of net selling might be considered a bit bearish.

Insider Ownership Of California Resources

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. California Resources insiders own about US$28m worth of shares. That equates to 0.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About California Resources Insiders?

The stark truth for California Resources is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing California Resources. You'd be interested to know, that we found 5 warning signs for California Resources and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com