Some of the losses seen by insiders who purchased US$6.0m worth of PureCycle Technologies, Inc. (NASDAQ:PCT) shares over the past year were recovered after the stock increased by 5.5% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$129k since the time of purchase.

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.

View our latest analysis for PureCycle Technologies

PureCycle Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Jeffrey Fieler bought US$5.0m worth of shares at a price of US$7.00 per share. That means that an insider was happy to buy shares at above the current price of US$6.85. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 857.14k shares worth US$6.0m. But they sold 226.17k shares for US$1.8m. Overall, PureCycle Technologies insiders were net buyers during 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Have PureCycle Technologies Insiders Traded Recently?

We have seen a bit of insider selling at PureCycle Technologies, over the last three months. Chief Executive Officer Dustin Olson sold just US$7.6k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

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. PureCycle Technologies insiders own about US$149m worth of shares (which is 13% of the company). 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 Do The PureCycle Technologies Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, PureCycle Technologies insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PureCycle Technologies. Case in point: We've spotted 5 warning signs for PureCycle Technologies you should be aware of, and 2 of these are concerning.

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.

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.

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