It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Patriot One Technologies Inc. (TSE:PAT), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Patriot One Technologies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Dinesh Kandanchatha, for CA$270k worth of shares, at about CA$2.72 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. The silver lining is that this sell-down took place above the latest price (CA$1.97). So it is hard to draw any strong conclusion from it. Notably Dinesh Kandanchatha was also the biggest buyer, having purchased CA$9.7k worth of shares.
Over the last year we saw more insider selling of Patriot One Technologies shares, than buying. You can see the insider transactions (by 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!
I will like Patriot One Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Patriot One Technologies Have Sold Stock Recently
Over the last three months, we’ve seen significant insider selling at Patriot One Technologies. In total, Dinesh Kandanchatha sold CA$485k worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the directors think that the shares are a bargain.
Does Patriot One Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.2% of Patriot One Technologies shares, worth about CA$8.8m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Patriot One Technologies Insiders?
An insider hasn’t bought Patriot One Technologies stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. As the saying goes, only fools rush in. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Patriot One Technologies.
But note: Patriot One Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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