Yahoo Finance Multiple insiders bought Power Metal Resources plc (LON:POW) stock earlier this year, a positive sign for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Power Metal Resources plc (LON:POW), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Power Metal Resources
The Last 12 Months Of Insider Transactions At Power Metal Resources
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Edmund Charles Shaw for UK£82k worth of shares, at about UK£0.021 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.013). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Edmund Charles Shaw was also the biggest seller.
Happily, we note that in the last year insiders paid UK£203k for 9.68m shares. On the other hand they divested 4.91m shares, for UK£101k. Overall, Power Metal Resources insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Power Metal Resources Insiders Bought Stock Recently
There was some insider buying at Power Metal Resources over the last quarter. CEO & Executive Director Paul Johnson shelled out UK£17k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
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. Our data indicates that Power Metal Resources insiders own about UK£2.4m worth of shares (which is 13% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Power Metal Resources Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Power Metal Resources insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Power Metal Resources. At Simply Wall St, we've found that Power Metal Resources has 5 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course Power Metal Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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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.
