Platinum Group Metals Insiders Miss 17% Gain After Offloading Stock

While it’s been a great week for Platinum Group Metals Ltd. (TSE:PTM) shareholders after stock gained 17%, company insiders might have missed out on those gains after selling stock earlier this year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Platinum Group Metals

The Last 12 Months Of Insider Transactions At Platinum Group Metals

In the last twelve months, the biggest single sale by an insider was when the President, Frank Hallam, sold CA$76k worth of shares at a price of CA$2.42 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$1.62). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Platinum Group Metals shares, than buying. 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!

I will like Platinum Group Metals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Are Platinum Group Metals Insiders Buying Or Selling?

Independent Director Stuart Harshaw bought just CA$4.9k worth of shares in that time. That's not much at all. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of Platinum Group Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our information indicates that Platinum Group Metals insiders own about CA$347k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Platinum Group Metals Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don't take much encouragement from the transactions by Platinum Group Metals insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Platinum Group Metals (1 shouldn't be ignored) you should be aware of.

But note: Platinum Group Metals 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.

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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.