How Many Centennial Resource Development, Inc. (NASDAQ:CDEV) Shares Did Insiders Buy, In The Last Year?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Centennial Resource Development, Inc. (NASDAQ:CDEV).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise’.
Check out our latest analysis for Centennial Resource Development
Centennial Resource Development Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Mark Papa for US$344k worth of shares, at about US$3.44 per share. That means that an insider was happy to buy shares at above the current price of US$0.62. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Centennial Resource Development insiders were buying shares, but not selling. They paid about US$2.17 on average. I’d consider this a positive as it suggests insiders see value at around the current price. 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!
Centennial Resource Development is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Centennial Resource Development Have Bought Stock Recently
It’s good to see that Centennial Resource Development insiders have made notable investments in the company’s shares. Specifically, CFO, VP & Assistant Secretary George Glyphis bought US$91k worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of Centennial Resource Development
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. Our data indicates that Centennial Resource Development insiders own about US$6.2m worth of shares (which is 3.6% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Centennial Resource Development Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Centennial Resource Development insiders are reasonably well aligned, and optimistic for the future. 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. Every company has risks, and we’ve spotted 3 warning signs for Centennial Resource Development you should know about.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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