Have Insiders Been Buying Plant-Based Investment Corp. (CSE:PBIC) Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Plant-Based Investment Corp. (CSE:PBIC).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Plant-Based Investment

The Last 12 Months Of Insider Transactions At Plant-Based Investment

Over the last year, we can see that the biggest insider purchase was by insider Paul Andersen for CA$106k worth of shares, at about CA$0.40 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 610.00k shares worth CA$199k. But they sold 50.00k shares for CA$36k. In total, Plant-Based Investment insiders bought more than they sold over the last year. Their average price was about CA$0.33. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Plant-Based Investment Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Plant-Based Investment. Public Markets Portfolio Manager Michael Campbell divested only CA$36k 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

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$248k worth of Plant-Based Investment stock, about 1.0% of the company. We prefer to see high levels of insider ownership.

So What Do The Plant-Based Investment Insider Transactions Indicate?

While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. 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 Plant-Based Investment insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Plant-Based Investment (of which 3 don't sit too well with us!) you should know about.

Of course Plant-Based Investment 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.

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This article by Simply Wall St is general in nature. 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.
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