Potential PrairieSky Royalty Ltd. (TSE:PSK) shareholders may wish to note that the Independent Director, Robert Robotti, recently bought CA$264k worth of stock, paying CA$13.19 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 4065%.
PrairieSky Royalty Insider Transactions Over The Last Year
In fact, the recent purchase by Robert Robotti was the biggest purchase of PrairieSky Royalty shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of CA$13.36. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for PrairieSky Royalty share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid CA$873k for 64180 shares. On the other hand they divested 1000 shares, for CA$20k. In total, PrairieSky Royalty insiders bought more than they sold over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
PrairieSky Royalty 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.
Does PrairieSky Royalty Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 1.1% of PrairieSky Royalty shares, worth about CA$33m. 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 Do The PrairieSky Royalty Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in PrairieSky Royalty shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course PrairieSky Royalty may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.