Have Insiders Been Buying Marathon Oil Corporation (NYSE:MRO) Shares?

NYSE:MRO), you may well want to know whether insiders have been buying or selling.” data-reactid=”28″>We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Marathon Oil Corporation (NYSE:MRO), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″>We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.

View our latest analysis for Marathon Oil ” data-reactid=”36″> View our latest analysis for Marathon Oil

Marathon Oil Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Lee Tillman for US$198k worth of shares, at about US$3.62 per share. That means that an insider was happy to buy shares at around the current price of US$4.47. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we’re pleased to report that the insider purchases were made at close to current prices.

While Marathon Oil insiders bought shares during the last year, they didn’t sell. 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!

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list of growing companies with insider buying.” data-reactid=”52″>Marathon Oil is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Marathon Oil insiders own about US$10m worth of shares. That equates to 0.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Marathon Oil Insiders?

2 warning signs that you should run your eye over to get a better picture of Marathon Oil.” data-reactid=”56″>It doesn’t really mean much that no insider has traded Marathon Oil shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Marathon Oil and their transactions don’t cause us concern. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To assist with this, we’ve discovered 2 warning signs that you should run your eye over to get a better picture of Marathon Oil.

list of interesting companies, that have HIGH return on equity and low debt.” data-reactid=”57″>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.