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How Many Insiders Sold Profire Energy, Inc. (NASDAQ:PFIE) Shares?

Joel Foster

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Profire Energy, Inc. (NASDAQ:PFIE).

What Is Insider Buying?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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.’

View our latest analysis for Profire Energy

Profire Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when Harold Albert sold US$16m worth of shares at a price of US$3.25 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$1.51. So it may not tell us anything about how insiders feel about the current share price.

We note that in the last year insiders divested 8.13m shares for a total of US$26m. In total, Profire Energy insiders sold more than they bought over the last year. They sold for an average price of about US$3.25. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$1.51. You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqCM:PFIE Insider Trading December 21st 18
NasdaqCM:PFIE Insider Trading December 21st 18

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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Profire Energy insiders own 31% of the company, currently worth about US$24m based on the recent share price. 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 Profire Energy Insiders?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. Our analysis of Profire Energy insider transactions leaves us cautious. But it’s good to see that insiders own shares in 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.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.