Investors who take an interest in Infinity Natural Resources, Inc. (NYSE:INR) should definitely note that the Independent Director, William Quinn, recently paid US$13.20 per share to buy US$139k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

The Last 12 Months Of Insider Transactions At Infinity Natural Resources

In the last twelve months, the biggest single sale by an insider was when the Executive VP, David Sproule, sold US$4.8m worth of shares at a price of US$17.43 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$13.16). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 82.15k shares worth US$1.1m. But insiders sold 277.50k shares worth US$4.8m. In total, Infinity Natural Resources insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.5m worth of Infinity Natural Resources stock, about 0.4% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Infinity Natural Resources Tell Us?

The insider sales have outweighed the insider buying, at Infinity Natural Resources, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Infinity Natural Resources is growing earnings. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Infinity Natural Resources is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.