Yahoo Finance Should You Take Comfort From Insider Transactions At Progressive Planet Solutions Inc. (CVE:PLAN)?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Progressive Planet Solutions Inc. (CVE:PLAN).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for Progressive Planet Solutions
The Last 12 Months Of Insider Transactions At Progressive Planet Solutions
Over the last year, we can see that the biggest insider purchase was by Member of Technical Advisory Board David Richardson for CA$101k worth of shares, at about CA$0.07 per share. That means that an insider was happy to buy shares at above the current price of CA$0.035. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.
Over the last year, we can see that insiders have bought 2.44m shares worth CA$182k. But they sold 300000 shares for CA$15k. In the last twelve months there was more buying than selling by Progressive Planet Solutions insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Progressive Planet Solutions Insiders Bought Stock Recently
At Progressive Planet Solutions,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, three insiders bought CA$156k worth of shares in that time. But Chairman & CEO Stephen Harpur sold shares worth CA$15k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Progressive Planet Solutions shares, worth about CA$112k, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Progressive Planet Solutions Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Progressive Planet Solutions insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Progressive Planet Solutions. For instance, we've identified 6 warning signs for Progressive Planet Solutions (4 are a bit concerning) you should be aware of.
But note: Progressive Planet Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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