NYSE:RRC).” data-reactid=”28″>We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Range Resources Corporation (NYSE:RRC).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″>We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
Check out our latest analysis for Range Resources ” data-reactid=”36″>Check out our latest analysis for Range Resources
The Last 12 Months Of Insider Transactions At Range Resources
In the last twelve months, the biggest single purchase by an insider was when Independent Director Steffen Palko bought US$2.0m worth of shares at a price of US$2.20 per share. We do like to see buying, but this purchase was made at well below the current price of US$8.88. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Range Resources insiders may have bought shares in the last year, but they didn’t sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
list of growing companies that insiders are buying.” data-reactid=”52″>There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Range Resources
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. Range Resources insiders own about US$22m worth of shares. That equates to 1.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Range Resources Insiders?
2 warning signs for Range Resources that deserve your attention before buying any shares.” data-reactid=”56″>It doesn’t really mean much that no insider has traded Range Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don’t see anything to make us think Range Resources insiders are doubting the company, and they do own shares. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Range Resources that deserve your attention before buying any shares.
collection of high quality companies.” data-reactid=”57″>Of course Range Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”63″>This article by Simply Wall St is general in nature. 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.