MD, CEO & Executive Director of Pilbara Minerals Dale Henderson Buys 31% More Shares

Pilbara Minerals Limited (ASX:PLS) shareholders (or potential shareholders) will be happy to see that the MD, CEO & Executive Director, Dale Henderson, recently bought a whopping AU$1.1m worth of stock, at a price of AU$2.23. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 31%.

View our latest analysis for Pilbara Minerals

Pilbara Minerals Insider Transactions Over The Last Year

Notably, that recent purchase by Dale Henderson is the biggest insider purchase of Pilbara Minerals shares that we've seen in the last year. That implies that an insider found the current price of AU$2.26 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Pilbara Minerals insiders were buying shares, but not selling. 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!

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

Does Pilbara Minerals 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Pilbara Minerals insiders own about AU$36m worth of shares. That equates to 0.5% 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 Pilbara Minerals Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Pilbara Minerals insiders are well aligned, and that they may think the share price is too low. 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, Pilbara Minerals has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.