In the last year, multiple insiders have substantially increased their holdings of CNX Resources Corporation (NYSE:CNX) 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, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At CNX Resources

Over the last year, we can see that the biggest insider purchase was by Independent Director Bernard Lanigan for US$2.0m worth of shares, at about US$26.81 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$40.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 151.23k shares worth US$4.0m. But insiders sold 1.23k shares worth US$26k. In the last twelve months there was more buying than selling by CNX Resources insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At CNX Resources Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at CNX Resources. We can see that Independent Director Bernard Lanigan paid US$2.0m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of CNX Resources

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. We usually like to see fairly high levels of insider ownership. CNX Resources insiders own 2.4% of the company, currently worth about US$145m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The CNX Resources Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about CNX Resources. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for CNX Resources (of which 1 shouldn't be ignored!) you should know about.

But note: CNX Resources 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.