Pleasing Signs As A Number Of Insiders Buy Panther Metals Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Panther Metals PLC's (LON:PALM) instance, it's good news for shareholders.

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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Panther Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Nicholas John O'Reilly for UK£46k worth of shares, at about UK£0.98 per share. That means that an insider was happy to buy shares at above the current price of UK£0.94. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Nicholas John O'Reilly was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 74.14k shares worth UK£66k. But insiders sold 53.07k shares worth UK£46k. Overall, Panther Metals insiders were net buyers during the last year. 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!

View our latest analysis for Panther Metals

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Panther Metals Have Bought Stock Recently

We saw some Panther Metals insider buying shares in the last three months. They bought UK£66k worth in that time. However, Non-Executive Chairman Nicholas John O'Reilly netted UK£46k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Does Panther Metals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Panther Metals insiders own 42% of the company, currently worth about UK£2.3m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Panther Metals Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Panther Metals insiders think the business has merit. 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 example - Panther Metals has 5 warning signs we think you should be aware of.

Of course Panther 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.