Potential Prospect Resources Limited (ASX:PSC) shareholders may wish to note that the MD, CEO & Director, Samuel Hosack, recently bought AU$201k worth of stock, paying AU$0.24 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.0%.
Prospect Resources Insider Transactions Over The Last Year
In fact, the recent purchase by MD, CEO & Director Samuel Hosack was not their only acquisition of Prospect Resources shares this year. They previously made an even bigger purchase of AU$201k worth of shares at a price of AU$0.21 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Prospect Resources insiders may have bought shares in the last year, but they didn't sell any. 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!
View our latest analysis for Prospect Resources
Prospect Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Prospect Resources
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 8.6% of Prospect Resources shares, worth about AU$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Prospect Resources Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Prospect Resources we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Prospect Resources (2 are concerning!) that we believe deserve your full attention.
Of course Prospect Resources 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.