Brett Paton Just Bought 9.2% More Shares In PointsBet Holdings Limited (ASX:PBH)

Those following along with PointsBet Holdings Limited (ASX:PBH) will no doubt be intrigued by the recent purchase of shares by insider Brett Paton, who spent a stonking AU$6.9m on stock at an average price of AU$6.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 9.2%.

See our latest analysis for PointsBet Holdings

The Last 12 Months Of Insider Transactions At PointsBet Holdings

Notably, that recent purchase by Brett Paton is the biggest insider purchase of PointsBet Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$11.01), we still think insider buying is a positive. 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 insiders purchased 2.29m shares for AU$11m. But they sold 297.72k shares for AU$3.4m. Overall, PointsBet Holdings insiders were net buyers during the last year. Their average price was about AU$4.93. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

PointsBet Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that PointsBet Holdings insiders own 26% of the company, worth about AU$555m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About PointsBet Holdings Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PointsBet Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that PointsBet Holdings is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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This article by Simply Wall St is general in nature. 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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