Insider Buying: The PARKD Limited (ASX:PKD) Non-Executive Chairman Just Bought 10% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the PARKD Limited (ASX:PKD) Non-Executive Chairman, Bronte Howson, recently bought AU$58k worth of stock, for AU$0.03 per share. That purchase might not be huge but it did increase their holding by 10%.

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The Last 12 Months Of Insider Transactions At PARKD

The insider, Ian Thom, made the biggest insider sale in the last 12 months. That single transaction was for AU$80k worth of shares at a price of AU$0.02 each. That means that even when the share price was below the current price of AU$0.039, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 62% of Ian Thom's holding. The only individual insider seller over the last year was Ian Thom.

Happily, we note that in the last year insiders paid AU$122k for 4.92m shares. On the other hand they divested 4.00m shares, for AU$80k. In the last twelve months there was more buying than selling by PARKD insiders. The average buy price was around AU$0.025. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

PARKD is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does PARKD Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. PARKD insiders own about AU$2.0m worth of shares (which is 69% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About PARKD Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest PARKD insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PARKD. Our analysis shows 5 warning signs for PARKD (4 are a bit unpleasant!) and we strongly recommend you look at these before investing.

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.

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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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