Possible Turnaround For Pryme Insiders, Still Down €10m

Insiders who purchased €11.7m worth of Pryme N.V. (OB:PRYME) shares over the past year recouped some of their losses after price gained 43% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling €10m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Pryme

The Last 12 Months Of Insider Transactions At Pryme

In the last twelve months, the biggest single purchase by an insider was when insider Boudewijn van Vliet bought kr12m worth of shares at a price of kr110 per share. That means that an insider was happy to buy shares at above the current price of kr14.40. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Pryme insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Pryme is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Pryme Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Pryme insiders own about kr15m worth of shares (which is 12% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Pryme Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Pryme and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pryme. When we did our research, we found 6 warning signs for Pryme (5 shouldn't be ignored!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.