We'd be surprised if Par Pacific Holdings, Inc. (NYSE:PARR) shareholders haven't noticed that the VP, Chief Accounting Officer & Controller, Ivan Guerra, recently sold US$225k worth of stock at US$37.49 per share. That sale was 27% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Par Pacific Holdings
In the last twelve months, the biggest single sale by an insider was when the Senior VP & CFO, Shawn Flores, sold US$230k worth of shares at a price of US$36.69 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$37.15. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 20% of Shawn Flores's holding.
Par Pacific Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. Par Pacific Holdings insiders own about US$63m worth of shares. That equates to 2.9% 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.
What Might The Insider Transactions At Par Pacific Holdings Tell Us?
Insiders sold Par Pacific Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Par Pacific Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Par Pacific Holdings has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: Par Pacific Holdings 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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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.