PyroGenesis Canada's Market Cap Drops To CA$113m Leaving Insiders With Losses
Insiders who bought CA$2.52m worth of PyroGenesis Canada Inc.'s (TSE:PYR) stock at an average buy price of CA$1.00 over the last year may be disappointed by the recent 13% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$1.54m, which is not great.
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.
Check out our latest analysis for PyroGenesis Canada
PyroGenesis Canada Insider Transactions Over The Last Year
The President Photis Pascali made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.5m worth of shares at a price of CA$1.00 each. That means that even when the share price was higher than CA$0.61 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 2.52m shares worth CA$2.5m. On the other hand they divested 31.03k shares, for CA$28k. In total, PyroGenesis Canada insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) 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!
PyroGenesis Canada is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of PyroGenesis Canada
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that PyroGenesis Canada insiders own 42% of the company, worth about CA$47m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At PyroGenesis Canada Tell Us?
It doesn't really mean much that no insider has traded PyroGenesis Canada shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like PyroGenesis Canada insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PyroGenesis Canada. At Simply Wall St, we've found that PyroGenesis Canada has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
But note: PyroGenesis Canada 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
