Even if it's not a huge purchase, we think it was good to see that Andrew Phillips, the President of PrairieSky Royalty Ltd. (TSE:PSK) recently shelled out CA$127k to buy stock, at CA$18.09 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for PrairieSky Royalty

The Last 12 Months Of Insider Transactions At PrairieSky Royalty

Over the last year, we can see that the biggest insider purchase was by Independent Director Robert Robotti for CA$658k worth of shares, at about CA$13.16 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$17.77. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months PrairieSky Royalty insiders were buying shares, but not selling. They paid about CA$14.78 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of PrairieSky Royalty

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that PrairieSky Royalty insiders own 1.2% of the company, worth about CA$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At PrairieSky Royalty Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest PrairieSky Royalty insiders are well aligned, and that they may think the share price is too low. 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 help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in PrairieSky Royalty.