Some Permian Resources Corporation (NYSE:PR) shareholders may be a little concerned to see that the Director, Robert Anderson, recently sold a substantial US$16m worth of stock at a price of US$15.71 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 68% of their entire holding.

The Last 12 Months Of Insider Transactions At Permian Resources

Notably, that recent sale by Robert Anderson is the biggest insider sale of Permian Resources shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$16.04). 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. It is worth noting that this sale was 68% 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!

I will like Permian Resources 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 Permian Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Permian Resources insiders own 2.6% of the company, worth about US$341m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Permian Resources Insider Transactions Indicate?

Insiders haven't bought Permian Resources stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Permian Resources. Every company has risks, and we've spotted 5 warning signs for Permian Resources you should know about.

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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