Insiders sold Perpetual Energy Inc. (TSE:PMT) stock at a low of CA$0.95 , meanwhile current prices stay relatively expensive at CA$1.09

Published
August 08, 2022
TSX:PMT
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Perpetual Energy Inc.'s (TSE:PMT) stock price has dropped 14% in the previous week, but insiders who sold CA$165k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CA$0.95 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Perpetual Energy

Perpetual Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Jeffrey Green, sold CA$95k worth of shares at a price of CA$1.33 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$1.09). So it is hard to draw any strong conclusion from it.

In total, Perpetual Energy insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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TSX:PMT Insider Trading Volume August 8th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Perpetual Energy Have Sold Stock Recently

We've seen more insider selling than insider buying at Perpetual Energy recently. In that time, insider Jeffrey Green dumped CA$95k worth of shares. Meanwhile Independent Director Linda Dietsche bought CA$20k worth , as we said above . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership Of Perpetual Energy

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of Perpetual Energy shares, worth about CA$7.8m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The Perpetual Energy Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Perpetual Energy, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Perpetual Energy makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Perpetual Energy has 6 warning signs (and 1 which is a bit unpleasant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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