Who Has Been Buying Paragon Banking Group PLC (LON:PAG) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Paragon Banking Group PLC (LON:PAG).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Paragon Banking Group

The Last 12 Months Of Insider Transactions At Paragon Banking Group

In the last twelve months, the biggest single purchase by an insider was when Chief Executive & Director Nigel Terrington bought UK£64k worth of shares at a price of UK£3.20 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£4.52. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Paragon Banking Group insiders bought shares during the last year, they didn't sell. 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!

Paragon Banking Group 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.

Paragon Banking Group Insiders Bought Stock Recently

There was some insider buying at Paragon Banking Group over the last quarter. Insiders purchased UK£34k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership of Paragon Banking Group

Many investors like to check how much of a company is owned by 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. From our data, it seems that Paragon Banking Group insiders own 0.5% of the company, worth about UK£5.4m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Paragon Banking Group Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Paragon Banking Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paragon Banking Group. At Simply Wall St, we found 1 warning sign for Paragon Banking Group that deserve your attention before buying any shares.

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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