Insiders In PPX Mining Left Out From 22% Price Rise After Disposing Stock
Even though PPX Mining Corp. (CVE:PPX) stock gained 22% last week, insiders who sold CA$223k worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of CA$0.38, which is higher than the current price, may have been the best decision.
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.
PPX Mining Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the COO & Executive Director, John Thomas, sold CA$167k worth of shares at a price of CA$0.47 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$0.28. So it may not shed much light on insider confidence at current levels. John Thomas was the only individual insider to sell shares in the last twelve months. Notably John Thomas was also the biggest buyer, having purchased CA$119k worth of shares.
Happily, we note that in the last year insiders paid CA$119k for 2.31m shares. But insiders sold 592.72k shares worth CA$223k. John Thomas divested 592.72k shares over the last 12 months at an average price of CA$0.38. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for PPX Mining
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At PPX Mining Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at PPX Mining. President Ernest Mast shelled out CA$19k for shares in that time. We like it when there are only buyers, and no 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.
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. We usually like to see fairly high levels of insider ownership. PPX Mining insiders own about CA$50m worth of shares. That equates to 25% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About PPX Mining Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don't take much encouragement from the transactions by PPX Mining insiders. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 6 warning signs for PPX Mining (4 are a bit concerning) you should be aware of.
But note: PPX Mining 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.