Insiders At Platinum Group Metals Sold US$1.0m Of Stock Potentially Indicating Weakness

Platinum Group Metals Ltd.'s (TSE:PTM) stock rose 14% last week, but insiders who sold US$1.0m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$3.85, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Platinum Group Metals Insider Transactions Over The Last Year

The Vice President of Corporate Development, Kresimir Begic, made the biggest insider sale in the last 12 months. That single transaction was for CA$278k worth of shares at a price of CA$4.20 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$3.11). So it may not tell us anything about how insiders feel about the current share price.

Platinum Group Metals insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Platinum Group Metals

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Platinum Group Metals Have Sold Stock Recently

The last three months saw significant insider selling at Platinum Group Metals. In total, insiders dumped CA$957k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Platinum Group Metals

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. Our information indicates that Platinum Group Metals insiders own about CA$1.2m worth of shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Platinum Group Metals Tell Us?

Insiders haven't bought Platinum Group Metals stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. Every company has risks, and we've spotted 3 warning signs for Platinum Group Metals (of which 2 make us uncomfortable!) you should know about.

Of course Platinum Group Metals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.