Pollard Banknote Insiders Placed Bullish Bets Worth CA$562.4m

Multiple insiders secured a larger position in Pollard Banknote Limited (TSE:PBL) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Pollard Banknote

Pollard Banknote Insider Transactions Over The Last Year

The Co-CEO & Director John Pollard made the biggest insider purchase in the last 12 months. That single transaction was for CA$187m worth of shares at a price of CA$32.50 each. That implies that an insider found the current price of CA$33.74 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Pollard Banknote share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 17.31m shares worth CA$562m. But insiders sold 43.35k shares worth CA$1.4m. Overall, Pollard Banknote insiders were net buyers during the last year. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Pollard Banknote Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Pollard Banknote. In total, insiders dumped CA$603k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Pollard Banknote Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pollard Banknote insiders own 64% of the company, currently worth about CA$588m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Pollard Banknote Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Pollard Banknote that deserve your attention before buying any shares.

But note: Pollard Banknote 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com