Anyone interested in PrimeEnergy Resources Corporation (NASDAQ:PNRG) should probably be aware that a company insider, Robert de Rothschild, recently divested US$252k worth of shares in the company, at an average price of US$130 each. However, the silver lining is that the sale only reduced their total holding by 0.7%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At PrimeEnergy Resources

Notably, that recent sale by insider Robert de Rothschild was not the only time they sold PrimeEnergy Resources shares this year. Earlier in the year, they fetched US$97.50 per share in a -US$1.7m sale. That means that an insider was selling shares at slightly below the current price (US$132). 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. 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 only 6.0% of Robert de Rothschild's holding.

In the last year PrimeEnergy Resources insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does PrimeEnergy Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. PrimeEnergy Resources insiders own 62% of the company, currently worth about US$143m based on the recent share price. 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 PrimeEnergy Resources Insiders?

An insider sold PrimeEnergy Resources shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since PrimeEnergy Resources is profitable and growing, we're not too worried by this. 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. For instance, we've identified 2 warning signs for PrimeEnergy Resources (1 makes us a bit uncomfortable) you should be aware of.

Of course PrimeEnergy 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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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.