Have Petrus Resources Insiders Been Selling Stock?

Investors may wish to note that the President of Petrus Resources Ltd., Ken Gray, recently netted CA$107k from selling stock, receiving an average price of CA$1.39. However we note that the sale only shrunk their holding by 1.9%.

Check out our latest analysis for Petrus Resources

Petrus Resources Insider Transactions Over The Last Year

Notably, that recent sale by Ken Gray is the biggest insider sale of Petrus Resources shares that we've seen in the last year. That means that an insider was selling shares at around the current price of CA$1.38. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 646.42k shares worth CA$557k. But they sold 573.25k shares for CA$781k. All up, insiders sold more shares in Petrus Resources than they bought, over the last year. The average sell price was around CA$1.36. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Petrus Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Petrus Resources insiders own 75% of the company, currently worth about CA$128m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Petrus Resources Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Petrus Resources stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Petrus Resources. Every company has risks, and we've spotted 2 warning signs for Petrus Resources you should know about.

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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.

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