Charles Pellerin Is The Independent Director of Calfrac Well Services Ltd. (TSE:CFW) And They Just Picked Up 50% More Shares
Those following along with Calfrac Well Services Ltd. (TSE:CFW) will no doubt be intrigued by the recent purchase of shares by Charles Pellerin, Independent Director of the company, who spent a stonking CA$909k on stock at an average price of CA$5.46. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 50%.
View our latest analysis for Calfrac Well Services
Calfrac Well Services Insider Transactions Over The Last Year
Notably, that recent purchase by Charles Pellerin is the biggest insider purchase of Calfrac Well Services shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$5.19. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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.
Happily, we note that in the last year insiders paid CA$3.3m for 700.00k shares. On the other hand they divested 512.00 shares, for CA$2.9k. In total, Calfrac Well Services insiders bought more than they sold over the last year. Their average price was about CA$4.69. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Calfrac Well Services 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Calfrac Well Services insiders have about 2.0% of the stock, worth approximately CA$4.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Does This Data Suggest About Calfrac Well Services Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Calfrac Well Services insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Calfrac Well Services. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Calfrac Well Services.
But note: Calfrac Well Services 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.
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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.
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