Bullish PureCycle Technologies Insiders Rewarded As Their Investment Rises To US$1.34m

Insiders who bought PureCycle Technologies, Inc. (NASDAQ:PCT) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$427m as a result of the stock's 48% gain over the same period. As a result, the stock they originally bought for US$635.3k is now worth US$1.34m.

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.

Check out our latest analysis for PureCycle Technologies

The Last 12 Months Of Insider Transactions At PureCycle Technologies

Over the last year, we can see that the biggest insider purchase was by CEO & Director Dustin Olson for US$220k worth of shares, at about US$3.22 per share. We do like to see buying, but this purchase was made at well below the current price of US$8.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

PureCycle Technologies insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$3.79. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. PureCycle Technologies insiders own 11% of the company, currently worth about US$124m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At PureCycle Technologies 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. Judging from their transactions, and high insider ownership, PureCycle Technologies insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PureCycle Technologies. You'd be interested to know, that we found 3 warning signs for PureCycle Technologies and we suggest you have a look.

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.