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Investors who take an interest in PrairieSky Royalty Ltd. (TSE:PSK) should definitely note that the Independent Director, Robert Robotti, recently paid CA$13.45 per share to buy CA$342k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 27%.
The Last 12 Months Of Insider Transactions At PrairieSky Royalty
In fact, the recent purchase by Independent Director Robert Robotti was not their only acquisition of PrairieSky Royalty shares this year. Earlier in the year, they paid CA$11.67 per share in a CA$816k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$13.45. 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. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Does PrairieSky Royalty Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. It appears that PrairieSky Royalty insiders own 1.1% of the company, worth about CA$34m. 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?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of PrairieSky Royalty we think they are probably pretty confident of a bright 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. You'd be interested to know, that we found 2 warning signs for PrairieSky Royalty and we suggest you have a look.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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