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華爾街日報Perpetual Resources Up 13%, But Some Insiders Miss Out
Last week, Perpetual Resources Limited's (ASX:PEC) stock jumped 13%, but insiders who sold AU$280k worth of stock in over the past year are likely to be in a better position. Selling at an average price of AU$0.014, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
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.
The Last 12 Months Of Insider Transactions At Perpetual Resources
Over the last year, we can see that the biggest insider sale was by the insider, Tolga Kumova, for AU$280k worth of shares, at about AU$0.014 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.009. So it may not shed much light on insider confidence at current levels. Tolga Kumova was the only individual insider to sell shares in the last twelve months.
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!
View our latest analysis for Perpetual Resources
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Perpetual Resources insiders own 41% of the company, worth about AU$3.5m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Perpetual Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Perpetual Resources shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Perpetual Resources insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Perpetual Resources has 5 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course Perpetual 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.