Christopher Dail Spends US$877k On Perpetua Resources Stock

Those following along with Perpetua Resources Corp. (TSE:PPTA) will no doubt be intrigued by the recent purchase of shares by Christopher Dail, Exploration Manager of the company, who spent a stonking CA$877k on stock at an average price of CA$29.24. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by -103%.

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Perpetua Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Christopher Dail was the biggest purchase of Perpetua Resources shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$28.16 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 77.55k shares for CA$1.4m. On the other hand they divested 135.95k shares, for CA$2.0m. All up, insiders sold more shares in Perpetua Resources than they bought, over the last year. They sold for an average price of about US$14.38. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Perpetua Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Perpetua Resources insiders own about CA$20m worth of shares. That equates to 0.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Perpetua Resources Insiders?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Perpetua Resources, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Perpetua Resources. Every company has risks, and we've spotted 4 warning signs for Perpetua Resources (of which 3 can't be ignored!) 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.