Insiders who bought Pacific Bay Minerals Ltd. (CVE:PBM) in the last 12 months may probably not pay attention to the stock's recent 20% drop. Reason being, despite the recent loss, insiders original purchase value of CA$312k is now worth CA$440k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Pacific Bay Minerals
Pacific Bay Minerals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider David Schussler bought CA$200k worth of shares at a price of CA$0.07 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.10. 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.
Over the last year, we can see that insiders have bought 4.40m shares worth CA$312k. But they sold 7.10k shares for CA$497. In the last twelve months there was more buying than selling by Pacific Bay Minerals insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Pacific Bay Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Pacific Bay Minerals Insiders Bought Stock Recently
At Pacific Bay Minerals,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, eight insiders bought CA$311k worth of shares in that time. But we did see Vice President of Corporate Development Helder Carvalho sell shares worth CA$497. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Pacific Bay Minerals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Pacific Bay Minerals insiders own about CA$1.2m worth of shares (which is 49% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Pacific Bay Minerals Insider Transactions Indicate?
The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest Pacific Bay Minerals insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Pacific Bay Minerals has 5 warning signs (4 shouldn't be ignored!) that deserve your attention before going any further with your analysis.