Pioneer Minerals Insider Buyers Net AU$154k Despite 11% Stock Decline
Insiders who bought Pioneer Minerals Limited (ASX:PMM) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the AU$265.4k worth of stock they bought is now worth AU$419.4k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Pioneer Minerals Insider Transactions Over The Last Year
The Independent Non-Executive Chairman Agha Pervez made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.14 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.17. 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.
Pioneer Minerals insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.11 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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 Pioneer Minerals
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pioneer Minerals insiders own 47% of the company, currently worth about AU$5.6m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Pioneer Minerals Insiders?
The fact that there have been no Pioneer Minerals insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Pioneer Minerals insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pioneer Minerals. When we did our research, we found 4 warning signs for Pioneer Minerals (2 are a bit unpleasant!) that we believe deserve your full attention.
But note: Pioneer Minerals 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.