Yahoo Finance Pennine Petroleum Corporation (CVE:PNN) insiders are still down CA$39k after purchasing last year, recent gain helped regain some losses
Insiders who bought CA$234k worth of Pennine Petroleum Corporation (CVE:PNN) stock in the last year have seen some of their losses recouped as the stock gained 67% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$39k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Pennine Petroleum
Pennine Petroleum Insider Transactions Over The Last Year
In fact, the recent purchase by Raymond Gertz was the biggest purchase of Pennine Petroleum shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.025). 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. 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.
Pennine Petroleum insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pennine Petroleum is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Pennine Petroleum Have Bought Stock Recently
Over the last quarter, Pennine Petroleum insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$234k worth of shares. This makes one think the business has some good points.
Insider Ownership of Pennine Petroleum
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pennine Petroleum insiders own about CA$1.2m worth of shares. That equates to 25% of the company. 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 Pennine Petroleum Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Pennine Petroleum we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Pennine Petroleum has 6 warning signs (5 don't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Pennine Petroleum 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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
