Have Insiders Been Buying Pacific Bay Minerals Ltd. (CVE:PBM) Shares?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Pacific Bay Minerals Ltd. (CVE:PBM), 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, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for Pacific Bay Minerals
Pacific Bay Minerals Insider Transactions Over The Last Year
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
Over the last year, we can see that insiders have bought 1.32m shares worth CA$128k. But they sold 900.20k shares for CA$63k. Overall, Pacific Bay Minerals insiders were net buyers during the last year. Their average price was about CA$0.097. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price of CA$0.16. 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!
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.
Are Pacific Bay Minerals Insiders Buying Or Selling?
In the last three months, insiders bought CA$63k. But that was only a smidgen more than the CA$63k worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Pacific Bay Minerals insiders own 49% of the company, worth about CA$1.3m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Pacific Bay Minerals Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Pacific Bay Minerals insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pacific Bay Minerals. To that end, you should learn about the 4 warning signs we've spotted with Pacific Bay Minerals (including 3 which are a bit concerning).
Of course Pacific Bay Minerals 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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