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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Platinum Group Metals Ltd. (TSE:PTM), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Platinum Group Metals
While no particular insider transaction stood out, we can still look at the overall trading.
Over the last year, we can see that insiders have bought 48.45k shares worth CA$118k. But insiders sold 35.33k shares worth CA$89k. Overall, Platinum Group Metals insiders were net buyers during the last year. The average buy price was around CA$2.44. These transactions suggest that insiders have considered the current price of CA$2.43 attractive. 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.
Platinum Group Metals Insiders Are Selling The Stock
The last three months saw some Platinum Group Metals insider selling. The selling netted CA$89k for insiders. But the good news is that they bought CA$36k worth. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about CA$378k worth of Platinum Group Metals shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Platinum Group Metals Tell Us?
Unfortunately, there has been more insider selling of Platinum Group Metals stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. But we'd like it if insiders owned more stock, overall. So we can't be sure that insiders are optimistic. 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 5 warning signs for Platinum Group Metals (2 make us uncomfortable!) that we believe deserve your full attention.
But note: Platinum Group Metals 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.