Insiders who bought into PVW Resources Limited (ASX:PVW) earlier this year might wish they'd invested more as stock gained 44%

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PVW Resources Limited (ASX:PVW) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 44% resulting in a AU$5.4m addition to the company’s market value. In other words, the original AU$396k purchase is now worth AU$586k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for PVW Resources

The Last 12 Months Of Insider Transactions At PVW Resources

Over the last year, we can see that the biggest insider purchase was by insider Jason Peterson for AU$346k worth of shares, at about AU$0.17 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.24. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months PVW Resources insiders were buying shares, but not selling. 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!

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insider-trading-volume

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).

Insider Ownership of PVW Resources

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PVW Resources insiders own about AU$4.0m worth of shares. That equates to 23% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At PVW Resources Tell Us?

The fact that there have been no PVW Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think PVW Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PVW Resources. To that end, you should learn about the 3 warning signs we've spotted with PVW Resources (including 1 which makes us a bit uncomfortable).

Of course PVW 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, but not derivative transactions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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