Insider Stock Buyers At ProAm Explorations Recouped Some Losses This Week

Insiders who purchased CA$276.5k worth of ProAm Explorations Corporation (CSE:PMX) shares over the past year recouped some of their losses after price gained 17% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$123k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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ProAm Explorations Insider Transactions Over The Last Year

Notably, that recent purchase by CEO & Chairman Jason Cubitt was not the only time they bought ProAm Explorations shares this year. They previously made an even bigger purchase of CA$225k worth of shares at a price of CA$0.15 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.07). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Jason Cubitt was also the biggest seller.

In the last twelve months insiders purchased 2.19m shares for CA$276k. On the other hand they divested 350.00k shares, for CA$52k. Overall, ProAm Explorations insiders were net buyers during the last year. The average buy price was around CA$0.13. These transactions suggest that insiders have considered the current price attractive. 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!

Check out our latest analysis for ProAm Explorations

ProAm Explorations is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At ProAm Explorations Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at ProAm Explorations. Insiders shelled out CA$51k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does ProAm Explorations 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. A high insider ownership often makes company leadership more mindful of shareholder interests. ProAm Explorations insiders own about CA$2.1m worth of shares (which is 139% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The ProAm Explorations Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest ProAm Explorations insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - ProAm Explorations has 6 warning signs we think you should be aware of.

But note: ProAm Explorations 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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