Pretium Resources Inc. (TSE:PVG) drops to CA$17.48, yet insiders may have sold too early fetching only US$12.60 apiece

By
Simply Wall St
Published
November 24, 2021
TSX:PVG
Source: Shutterstock

Pretium Resources Inc.'s (TSE:PVG) value has fallen 3.5% in the last week, but insiders who sold US$89k worth of stock over the last year have had less success. The average selling price of US$12.60 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Pretium Resources

The Last 12 Months Of Insider Transactions At Pretium Resources

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

David Smith ditched 7.10k shares over the year. The average price per share was US$12.60. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
TSX:PVG Insider Trading Volume November 24th 2021

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

Insiders at Pretium Resources Have Sold Stock Recently

We have seen a bit of insider selling at Pretium Resources, over the last three months. Independent Director David Smith sold just CA$26k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Insider Ownership of Pretium Resources

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Pretium Resources insiders own 0.05% of the company, worth about CA$1.8m. We consider this fairly low insider ownership.

So What Do The Pretium Resources Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. We're a little cautious about the insider selling at Pretium Resources. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Pretium Resources and we suggest you have a look.

Of course Pretium Resources 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, but not derivative transactions.

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 (at) simplywallst.com.

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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.