Insider Stock Buying Reaches US$116.0m On HighPeak Energy

HighPeak Energy +0.20%

HighPeak Energy




In the last year, multiple insiders have substantially increased their holdings of HighPeak Energy, Inc. (NASDAQ:HPK) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for HighPeak Energy

The Last 12 Months Of Insider Transactions At HighPeak Energy

Over the last year, we can see that the biggest insider purchase was by insider John DeJoria for US$69m worth of shares, at about US$10.50 per share. Even though the purchase was made at a significantly lower price than the recent price (US$16.19), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 10.63m shares for US$116m. On the other hand they divested 3.62k shares, for US$52k. Overall, HighPeak Energy insiders were net buyers during the last year. 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!

NasdaqGM:HPK Insider Trading Volume April 3rd 2024

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does HighPeak Energy Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. HighPeak Energy insiders own about US$332m worth of shares (which is 16% 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.

So What Does This Data Suggest About HighPeak Energy Insiders?

It doesn't really mean much that no insider has traded HighPeak Energy shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like HighPeak Energy insiders are reasonably well aligned (owning significant chunk of the company's shares) 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. When we did our research, we found 4 warning signs for HighPeak Energy (2 shouldn't be ignored!) that we believe deserve your full attention.

But note: HighPeak Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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