Insiders At Northern Oil and Gas Sold US$7.1m In Stock, Alluding To Potential Weakness

Northern Oil and Gas, Inc. +1.47%

Northern Oil and Gas, Inc.

NOG

40.13

+1.47%

Many Northern Oil and Gas, Inc. (NYSE:NOG) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Northern Oil and Gas

Northern Oil and Gas Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Chairperson of the Board of Directors, Bahram Akradi, sold US$4.6m worth of shares at a price of US$41.93 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$34.66). So it may not shed much light on insider confidence at current levels.

Insiders in Northern Oil and Gas 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:NOG Insider Trading Volume January 30th 2024

I will like Northern Oil and Gas better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Northern Oil and Gas Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Northern Oil and Gas shares. In total, Independent Chairperson of the Board of Directors Bahram Akradi sold US$454k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Northern Oil and Gas 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Northern Oil and Gas insiders own about US$97m worth of shares. That equates to 2.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Northern Oil and Gas Insiders?

An insider sold Northern Oil and Gas shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 5 warning signs for Northern Oil and Gas (of which 1 can't be ignored!) you should know about.

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.

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