Insiders at Profire Energy, Inc. (NASDAQ:PFIE) have decreased their position in the stock by -95.51% over the past 6 months, according to the latest SEC Filings. Insiders now own 0.80% of total outstanding shares.
Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares.
The SEC says that an “insider” is anyone who owns at least a 10% stake in a company’s stock. Insiders who make trades are required to file all of their transactions within two business days of the initial transaction date. Information about legal insider trading is extremely valuable to investors. After all, if insiders are buying stock in their own company, they probably know something that a normal investor does not. Due to the fact that insiders are prevented from trading stock within a six-month period, it can be assumed that they are buying their own shares because they are confident that their company will be a top performer over a long period of time. One of the greatest investors of all time, Peter Lynch, is quoted as saying: “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
University of Michigan professor and noted insider trading researcher, Nejat Seyhun, discovered that when insiders bought shares of their own companies, the stocks outperformed the total market by 8.9% over the following year while when they sold shares, the stock underperformed 5.4% over the same period.
Profire Energy, Inc. (NASDAQ:PFIE) stands 5.16% away from its 50-day simple moving average and also 5.61% away from the 200-day average. Recently, the equity stands -38.68% away from the 52-week high and 132.14% from the 52-week low. The RSI (Relative Strength Index), an indicator that shows price strength by comparing upward and downward close-to-close movements is 59.80.
The consensus analysts recommendation at this point stands at 2.00 for Profire Energy, Inc.. This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. Further, analysts have a 12 month target price of $5.21 on company shares. This is according to the analysts polled by Thomson Reuters which have recently published research reports on the firm.
From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets.