Yahoo Finance Insiders who bought in the last 12 months lose an additional US$122k as PureCycle Technologies, Inc. (NASDAQ:PCT) drops to US$1.3b
Insiders who acquired US$329k worth of PureCycle Technologies, Inc.'s (NASDAQ:PCT) stock at an average price of US$17.35 in the past 12 months may be dismayed by the recent 32% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$207k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for PureCycle Technologies
The Last 12 Months Of Insider Transactions At PureCycle Technologies
In the last twelve months, the biggest single purchase by an insider was when insider Melissa Westerman bought US$199k worth of shares at a price of US$17.47 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.90). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
While PureCycle Technologies insiders bought shares during the last year, they didn't sell. 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!
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 PureCycle Technologies Have Bought Stock Recently
It's good to see that PureCycle Technologies insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$329k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership of PureCycle Technologies
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that PureCycle Technologies insiders own 18% of the company, worth about US$227m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About PureCycle Technologies Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest PureCycle Technologies insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for PureCycle Technologies (of which 1 shouldn't be ignored!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.