雅虎香港財經 Insiders Rewarded With AU$135k Addition To Investment As Pivotal Metals Stock Hits AU$17m \
Last week, Pivotal Metals Limited (ASX:PVT) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 17% last week, resulting in a AU$2.4m increase in the company's market worth. As a result, the stock they originally bought for AU$1.3m is now worth AU$1.4m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Pivotal Metals
Pivotal Metals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Kenneth Hall for AU$427k worth of shares, at about AU$0.024 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.035. 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.
Pivotal Metals insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.032 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
Pivotal Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Pivotal Metals Insiders Bought Stock Recently
It's good to see that Pivotal Metals insiders have made notable investments in the company's shares. In total, insiders bought AU$271k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Pivotal Metals Boast High 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 appears that Pivotal Metals insiders own 27% of the company, worth about AU$4.5m. 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 Do The Pivotal Metals Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Pivotal Metals insiders are well aligned, and that they may think the share price is too low. While we like knowing 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. Be aware that Pivotal Metals is showing 6 warning signs in our investment analysis, and 5 of those make us uncomfortable...
Of course Pivotal Metals 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, but not derivative transactions.
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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.
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