Insider Buyers At Panther Metals Recover Some Losses, But Still Down AU$174k

Insiders who purchased AU$697.6k worth of Panther Metals Ltd (ASX:PNT) shares over the past year recouped some of their losses after price gained 21% last week. However, total losses seen by insiders are still AU$174k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Panther Metals

The insider Carl Charalambous made the biggest insider purchase in the last 12 months. That single transaction was for AU$145k worth of shares at a price of AU$0.028 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.017). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Carl Charalambous was also the biggest seller.

In the last twelve months insiders purchased 30.80m shares for AU$698k. On the other hand they divested 22.40m shares, for AU$225k. In the last twelve months there was more buying than selling by Panther Metals insiders. The average buy price was around AU$0.023. This is nice to see since it implies that insiders might see value around current prices. 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!

See our latest analysis for Panther Metals

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

Insiders At Panther Metals Have Sold Stock Recently

We've seen more insider selling than insider buying at Panther Metals recently. We note insider Carl Charalambous cashed in AU$123k worth of shares. On the other hand we note MD, CEO & Director Daniel Tuffin bought AU$5.7k worth of shares. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

Insider Ownership Of Panther Metals

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. Our data indicates that Panther Metals insiders own about AU$610k worth of shares (which is 12% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Panther Metals Tell Us?

Unfortunately, there has been more insider selling of Panther Metals stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. But insiders own relatively little of the company, from what we can see. So the company doesn't look great on this analysis. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 6 warning signs for Panther Metals (5 are significant!) that we believe deserve your full attention.

But note: Panther Metals 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.