Insiders Give Up AU$387k As Panther Metals Stock Drops To AU$0.0095

Insiders who bought AU$674.5k worth of Panther Metals Ltd's (ASX:PNT) stock at an average buy price of AU$0.022 over the last year may be disappointed by the recent 21% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$287.7k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Panther Metals

Over the last year, we can see that the biggest insider purchase was by insider Carl Charalambous for AU$145k worth of shares, at about AU$0.028 per share. That means that an insider was happy to buy shares at above the current price of AU$0.0095. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Carl Charalambous was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 30.28m shares worth AU$674k. But they sold 22.40m shares for AU$225k. Overall, Panther Metals insiders were net buyers during the last year. They paid about AU$0.022 on average. I'd consider this a positive as it suggests insiders see value at around the current 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!

View our latest analysis for Panther Metals

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. It appears that Panther Metals insiders own 20% of the company, worth about AU$578k. 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 Panther Metals Insiders?

It doesn't really mean much that no insider has traded Panther Metals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Panther Metals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Panther Metals. While conducting our analysis, we found that Panther Metals has 5 warning signs and it would be unwise to ignore them.

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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.