The Independent Director of Pieridae Energy Limited (CVE:PEA), Andrew Judson, Just Bought 162% More Shares
Even if it's not a huge purchase, we think it was good to see that Andrew Judson, the Independent Director of Pieridae Energy Limited (CVE:PEA) recently shelled out CA$59k to buy stock, at CA$0.35 per share. While that isn't the hugest buy, it actually boosted their shareholding by 162%, which is good to see.
View our latest analysis for Pieridae Energy
The Last 12 Months Of Insider Transactions At Pieridae Energy
CEO, President & Director Alfred Sorensen made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.0m worth of shares at a price of CA$0.86 each. That means that even when the share price was higher than CA$0.38 (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. We always take careful note of the price insiders pay when purchasing 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.
Pieridae Energy insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$0.77. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by 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!
Pieridae Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Pieridae Energy shares, worth about CA$7.5m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Pieridae Energy Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the 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 Pieridae Energy insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 6 warning signs for Pieridae Energy (2 are potentially serious!) that we believe deserve your full attention.
But note: Pieridae Energy 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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