In the last year, multiple insiders have substantially increased their holdings of Devon Energy Corporation (NYSE:DVN) stock, indicating that insiders’ optimism about the company’s prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Devon Energy
The Last 12 Months Of Insider Transactions At Devon Energy
The Executive VP & COO Clay Gaspar made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$49.98 each. So it’s clear an insider wanted to buy, at around the current price, which is US$53.39. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Devon Energy insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 47.21k shares worth US$2.4m. On the other hand they divested 28.20k shares, for US$1.9m. Overall, Devon Energy insiders were net buyers during the last year. 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!
Devon Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Devon Energy Have Bought Stock Recently
Over the last quarter, Devon Energy insiders have spent a meaningful amount on shares. Overall, three insiders shelled out US$2.4m for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Devon Energy
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Devon Energy insiders own 0.7% of the company, currently worth about US$251m 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 Devon Energy Insiders?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Devon Energy insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we’ve found that Devon Energy has 3 warning signs (1 doesn’t sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Devon Energy 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, 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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