Investors who take an interest in Liberty Energy Inc. (NYSE:LBRT) should definitely note that the Independent Director, Arjun Murti, recently paid US$17.79 per share to buy US$250k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 78%.

The Last 12 Months Of Insider Transactions At Liberty Energy

The Chief Legal Officer & Corporate Secretary, R. Elliott, made the biggest insider sale in the last 12 months. That single transaction was for US$635k worth of shares at a price of US$25.40 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$18.71. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Liberty Energy shares, than buying. The average sell price was around US$26.48. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$18.71. 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!

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

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. Liberty Energy insiders own about US$53m worth of shares. That equates to 1.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Liberty Energy Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. Recent sales exacerbate our caution arising from analysis of Liberty Energy insider transactions. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Liberty Energy. For example - Liberty Energy has 3 warning signs we think you should be aware of.

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.