Insiders Who Sold Pantoro Made The Right Call As Market Cap Slides By AU$97m

Over the past year, insiders sold AU$591k worth of Pantoro Limited (ASX:PNR) stock at an average price of AU$0.046 per share allowing them to get the most out of their money. The company’s market cap plunged by AU$97m after price dropped by 12% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Pantoro

Pantoro Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Colin McIntyre, for AU$350k worth of shares, at about AU$0.039 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.11. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 90% of Colin McIntyre's stake. The only individual insider seller over the last year was Colin McIntyre.

Colin McIntyre divested 12.90m shares over the last 12 months at an average price of AU$0.046. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Pantoro insiders own 2.6% of the company, worth about AU$18m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Pantoro Insider Transactions Indicate?

The fact that there have been no Pantoro insider transactions recently certainly doesn't bother us. Our analysis of Pantoro insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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 example - Pantoro has 1 warning sign we think you should be aware of.

Of course Pantoro 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.