A NovaGold drill site.Handout
Featured below are companies that have experienced recent insider trading activity in the public market through their direct and indirect ownerships.
Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Selling activity may or may not be related to a stock's valuation; perhaps an insider needs to raise money for personal reasons. An insider's total holdings should be considered because a sale may, in context, be insignificant if this person has a large remaining position in the company. I tend to put great weight on insider transaction activity when I see multiple insiders trading a company's shares or units.
Let's begin the report detailing three companies with recent insider buying activity.
Arizona Mining Inc. (AZ-T)
On Oct. 16, Chief Financial Officer Tom Whelan purchased 10,000 shares at an average cost per share of $3.54. Prior to that, he acquired 10,000 shares on Oct. 12, bought 10,000 shares on Oct. 4 and accumulated 20,000 shares on Oct. 3. He held 60,000 shares in his portfolio after these transactions were completed.
Cathedral Energy Services Ltd. (CET-T)
Dan Wilks, with an ownership position above 10 per cent, continues to accumulate shares for an account in which he has control or direction over.
On Oct. 27, he purchased 296,122 shares at an average price per share of $1.5876. The prior day, he bought 133,000 shares and on Oct. 25, he acquired 156,200 shares.
Last week, we reported that Mr. Wilks purchased 625,100 shares at an average price per share of $1.35 for this account on Oct. 19. The previous day, he bought 57,100 shares at an average cost per share of $1.3458.
After all of these transactions, the portfolio's closing balance stood at 6,015,734 shares.
NovaGold Resources Inc. (NG-T)
On Oct. 26, three insiders were sellers in the market.
President and Chief Executive Officer Gregory Lang, exercised his options, receiving 100,000 shares, and sold 89,974 shares around the $5.27 per share level, reducing his large portfolio position to 1,291,774 shares.
Mélanie Hennessey, vice-president – corporate communications, exercised her options and sold the corresponding number of shares (100,000) at an average price per share of $5.28, leaving 332,404 shares in her portfolio.
In a relatively small transaction, Gillyeard Leathley, who sits on the board of directors, sold 3,000 shares at an average price per share of $5.25, paring his account's holdings to 49,486 shares.
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The following company has had mixed trading with both buying and selling activity reported by insiders.
Cardinal Energy Ltd. (CJ-T)
On Oct. 25, John Brussa, who sits on the board of directors, acquired 20,000 shares at an average price per share of approximately $4.12, taking his sizeable portfolio position up to 1,103,291 shares.
On Oct. 25, Chairman and Chief Executive Officer Scott Ratushny bought 5,000 shares at an average price per share of $4.17, and also purchased 5,000 shares on Oct. 20 at an average cost per share of $4.20. After these two trades, his portfolio held 100,000 shares.
On Oct. 18, Tim Hyde, the vice-president of exploration, sold 33,000 shares at an average price per share of $4.31, trimming his portfolio's holdings to 189,155 shares.
Jennifer Dowty