In spite of Prophecy International Holdings Limited's recent pullback, insiders still gained about AU$68k after buying earlier this year.

By
Simply Wall St
Published
May 10, 2022
ASX:PRO
Source: Shutterstock

Insiders who bought Prophecy International Holdings Limited (ASX:PRO) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the AU$234k worth of stock they bought is now worth AU$302k, indicating that their investment yielded a positive return.

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.

View our latest analysis for Prophecy International Holdings

Prophecy International Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Non-Executive Chairman Edwin Reynolds was not the only time they bought Prophecy International Holdings shares this year. They previously made an even bigger purchase of AU$190k worth of shares at a price of AU$0.66 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.92), we still think insider buying is a positive. 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.

Edwin Reynolds purchased 330.00k shares over the year. The average price per share was AU$0.71. 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!

insider-trading-volume
ASX:PRO Insider Trading Volume May 10th 2022

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

Does Prophecy International Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Prophecy International Holdings insiders own about AU$18m worth of shares. That equates to 26% 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 Do The Prophecy International Holdings Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Prophecy International Holdings 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 Prophecy International Holdings. Our analysis shows 4 warning signs for Prophecy International Holdings (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course Prophecy International Holdings 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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