Pleasing Signs As A Number Of Insiders Buy Power Metal Resources Stock

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.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Power Metal Resources Insider Transactions Over The Last Year

The CEO & Executive Director Sean Wade made the biggest insider purchase in the last 12 months. That single transaction was for UK£45k worth of shares at a price of UK£0.13 each. That implies that an insider found the current price of UK£0.14 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Power Metal Resources share holders is that insiders were buying at near the current price.

While Power Metal Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Power Metal Resources

Power Metal Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Power Metal Resources Boast High 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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Power Metal Resources insiders own 6.1% of the company, worth about UK£993k. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Power Metal Resources Insiders?

It doesn't really mean much that no insider has traded Power Metal Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. 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. Be aware that Power Metal Resources is showing 3 warning signs in our investment analysis, and 2 of those make us uncomfortable...

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 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.