Prime Drink Group Insiders Are Down CA$273k But Regain Some Losses

Insiders who bought CA$655.7k worth of Prime Drink Group Corp. (CSE:PRME) stock in the last year recovered part of their losses as the stock rose by 11% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$273k since the time of purchase.

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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Prime Drink Group

In the last twelve months, the biggest single purchase by an insider was when insider Garry Turpin bought CA$400k worth of shares at a price of CA$0.17 per share. That means that even when the share price was higher than CA$0.10 (the recent price), an insider wanted to purchase shares. 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. 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.

Over the last year, we can see that insiders have bought 3.83m shares worth CA$656k. But they sold 90.00k shares for CA$19k. In total, Prime Drink Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Prime Drink Group

Prime Drink Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Prime Drink Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Prime Drink Group insiders own about CA$3.3m worth of shares (which is 9.3% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Prime Drink Group Insider Transactions Indicate?

The fact that there have been no Prime Drink Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Prime Drink Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prime Drink Group. Our analysis shows 3 warning signs for Prime Drink Group (2 are a bit concerning!) and we strongly recommend you look at these before investing.

But note: Prime Drink Group 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.

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

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.