Insider Purchases Worth AU$788.4k See Losses As PPK Group Market Value Drops To AU$39m

Insiders who acquired AU$788.4k worth of PPK Group Limited's (ASX:PPK) stock at an average price of AU$1.42 in the past 12 months may be dismayed by the recent 14% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$222.7k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for PPK Group

The Last 12 Months Of Insider Transactions At PPK Group

Over the last year, we can see that the biggest insider purchase was by Executive Director Glenn Molloy for AU$365k worth of shares, at about AU$1.46 per share. That means that an insider was happy to buy shares at above the current price of AU$0.40. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months PPK Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).

Does PPK Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. PPK Group insiders own about AU$15m worth of shares. That equates to 38% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At PPK Group Tell Us?

It doesn't really mean much that no insider has traded PPK Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in PPK Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PPK Group. Every company has risks, and we've spotted 3 warning signs for PPK Group (of which 2 are concerning!) you should know about.

Of course PPK Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.