Insiders who bought HighPeak Energy, Inc. (NASDAQ:HPK) in the last 12 months may probably not pay attention to the stock's recent 12% drop. Reason being, despite the recent loss, insiders original purchase value of US$115.4m is now worth US$133.6m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for HighPeak Energy
The Last 12 Months Of Insider Transactions At HighPeak Energy
Over the last year, we can see that the biggest insider purchase was by insider John DeJoria for US$69m worth of shares, at about US$10.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.73. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$115m for 10.50m shares. But insiders sold 3.62k shares worth US$52k. In the last twelve months there was more buying than selling by HighPeak Energy insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
HighPeak Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At HighPeak Energy Have Bought Stock Recently
At HighPeak Energy,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$8.4m on shares. But Independent Director Jay Chernosky sold shares worth US$52k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
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. It's great to see that HighPeak Energy insiders own 16% of the company, worth about US$263m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About HighPeak Energy Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about HighPeak Energy. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HighPeak Energy. Be aware that HighPeak Energy is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
