Yahoo Finance Positive Signs As Multiple Insiders Buy Power Metal Resources Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Power Metal Resources plc's (LON:POW) instance, it's good news for 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.
See our latest analysis for Power Metal Resources
Power Metal Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Edmund Charles Shaw bought UK£46k worth of shares at a price of UK£0.0068 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.0077. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid UK£81k for 11.99m shares. But insiders sold 7.00m shares worth UK£46k. Overall, Power Metal Resources insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Power Metal Resources insiders own 12% of the company, worth about UK£1.9m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Power Metal Resources Tell Us?
The fact that there have been no Power Metal Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Power Metal Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Power Metal Resources. Our analysis shows 6 warning signs for Power Metal Resources (3 are significant!) and we strongly recommend you look at them before investing.
But note: Power Metal 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.
