Who Has Been Buying Pretium Resources Inc. (TSE:PVG) Shares?

TSE:PVG).” data-reactid=”28″>We often see insiders buying up shares in companies that perform well over the long term. 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 Pretium Resources Inc. (TSE:PVG).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 Pretium Resources ” data-reactid=”36″> View our latest analysis for Pretium Resources

The Last 12 Months Of Insider Transactions At Pretium Resources

In the last twelve months, the biggest single purchase by an insider was when VP & Chief Exploration Officer Kenneth McNaughton bought CA$4.1m worth of shares at a price of CA$11.52 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$16.69. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 372.00k shares worth CA$4.3m. On the other hand they divested 38.64k shares, for CA$345k. In the last twelve months there was more buying than selling by Pretium Resources insiders. 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!

More

list of companies. (Hint: insiders have been buying them).” data-reactid=”52″>There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Pretium Resources Have Bought Stock Recently

It’s good to see that Pretium Resources insiders have made notable investments in the company’s shares. Specifically, Independent Chairman of the Board Richard O’Brien bought CA$137k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.

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. Insiders own 0.4% of Pretium Resources shares, worth about CA$13m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Pretium Resources Tell Us?

2 warning signs for Pretium Resources that deserve your attention before buying any shares.” data-reactid=”58″>It’s certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Pretium Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Pretium Resources that deserve your attention before buying any shares.