Insiders At Total Energy Services Sold CA$6.2m In Stock, Alluding To Potential Weakness
Many Total Energy Services Inc. (TSE:TOT) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Total Energy Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, William J. Kosich, for CA$4.0m worth of shares, at about CA$22.76 per share. That means that an insider was selling shares at slightly below the current price (CA$25.46). 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. This single sale was 50% of William J. Kosich's stake.
In the last twelve months insiders purchased 120.65k shares for CA$2.0m. But they sold 275.00k shares for CA$6.2m. In total, Total Energy Services insiders sold more than they bought over the last year. The sellers received a price of around CA$22.53, on average. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Total Energy Services
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).
Total Energy Services Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Total Energy Services shares over the last three months. We note insider William J. Kosich cashed in CA$5.0m worth of shares. On the other hand we note insiders bought CA$488k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership Of Total Energy Services
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. It appears that Total Energy Services insiders own 11% of the company, worth about CA$100m. 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 Do The Total Energy Services Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Total Energy Services stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Total Energy Services is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Total Energy Services that deserve your attention before buying any shares.
Of course Total Energy Services 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.