Viewing insider transactions for HighPeak Energy, Inc.'s (NASDAQ:HPK ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for HighPeak Energy
The Chairman & CEO Jack Hightower made the biggest insider purchase in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$15.50 each. That means that an insider was happy to buy shares at above the current price of US$14.17. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Jack Hightower.
Jack Hightower bought a total of 303.65k shares over the year at an average price of US$15.41. 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!
HighPeak Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. HighPeak Energy insiders own about US$307m worth of shares (which is 17% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about HighPeak Energy. Looks promising! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of HighPeak Energy.
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 of direct interests only, but not derivative transactions or indirect interests.
Discover if HighPeak Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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