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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Progressive Planet Solutions Inc. (CVE:PLAN), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. 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
Progressive Planet Solutions Insider Transactions Over The Last Year
Notably, that recent purchase by Dwayne Melrose is the biggest insider purchase of Progressive Planet Solutions shares that we've seen in the last year. That means that even when the share price was higher than CA$0.09 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 2.05m shares worth CA$133k. But insiders sold 300.00k shares worth CA$15k. In total, Progressive Planet Solutions insiders bought more than they sold over the last year. They paid about CA$0.065 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders at Progressive Planet Solutions Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Progressive Planet Solutions. We can see that Independent Director Dwayne Melrose paid CA$80k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.