Bullish PyroGenesis Insiders Loaded Up On CA$1.26m Of Stock

Quite a few insiders have dramatically grown their holdings in PyroGenesis Inc. (TSE:PYR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for PyroGenesis

The Last 12 Months Of Insider Transactions At PyroGenesis

In the last twelve months, the biggest single purchase by an insider was when President Photis Pascali bought CA$1.2m worth of shares at a price of CA$0.80 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.73). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 1.58m shares worth CA$1.3m. But they sold 45.00k shares for CA$30k. In the last twelve months there was more buying than selling by PyroGenesis insiders. 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!

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.

Does PyroGenesis 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PyroGenesis insiders own about CA$59m worth of shares (which is 43% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At PyroGenesis Tell Us?

The fact that there have been no PyroGenesis insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like PyroGenesis insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PyroGenesis. At Simply Wall St, we've found that PyroGenesis has 5 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: PyroGenesis 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.

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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.