Yahoo Finance With stock up 20%, Insiders of Petra Diamonds Limited (LON:PDL) must be wishing they had bought more last year
Insiders who bought Petra Diamonds Limited (LON:PDL) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£36m as a result of the stock's 20% gain over the same period. In other words, the original US$113k purchase is now worth US$171k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Petra Diamonds
The Last 12 Months Of Insider Transactions At Petra Diamonds
The Independent Non-Executive Chairman Peter Hill made the biggest insider purchase in the last 12 months. That single transaction was for UK£98k worth of shares at a price of UK£0.70 each. Even though the purchase was made at a significantly lower price than the recent price (UK£1.12), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Petra Diamonds insiders may have bought shares in the last year, but they didn't sell any. 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!
Petra Diamonds is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Petra Diamonds
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. Our information indicates that Petra Diamonds insiders own about UK£171k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Petra Diamonds Insiders?
The fact that there have been no Petra Diamonds insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Petra Diamonds stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Petra Diamonds. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Petra Diamonds.
Of course Petra Diamonds 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.
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