Some Devon Energy Corporation (NYSE:DVN) shareholders may be a little concerned to see that the Executive VP & Chief Corporate Development Officer, Jeffrey Ritenour, recently sold a substantial US$3.3m worth of stock at a price of US$46.66 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Devon Energy

Notably, that recent sale by Jeffrey Ritenour is the biggest insider sale of Devon Energy shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$46.90. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14% of Jeffrey Ritenour's holding.

Insiders in Devon Energy didn't buy any shares in the last year. 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!

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Does Devon Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Devon Energy insiders own 0.4% of the company, currently worth about US$218m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Devon Energy Insiders?

An insider hasn't bought Devon Energy stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.

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.