We'd be surprised if Profire Energy, Inc. (NASDAQ:PFIE) shareholders haven't noticed that an insider, Harold Albert, recently sold US$118k worth of stock at US$0.75 per share. However, the silver lining is that the sale only reduced their total holding by 2.9%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Profire Energy
Notably, that recent sale by Harold Albert is the biggest insider sale of Profire Energy shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$0.74. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 34% of Profire Energy shares, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Profire Energy Insiders?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Profire Energy.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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