Pennant International Group's Market Cap Up UK£1.3m Following Year Of Insider Stock Buying

Last week, Pennant International Group plc (LON:PEN) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a UK£1.3m increase in the company's market worth, implying a 10% gain on their initial purchase. In other words, the original UK£110.2k purchase is now worth UK£121.7k.

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.

See our latest analysis for Pennant International Group

The Last 12 Months Of Insider Transactions At Pennant International Group

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Ian Dighe for UK£50k worth of shares, at about UK£0.25 per share. That means that an insider was happy to buy shares at around the current price of UK£0.28. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Pennant International Group insiders decided to buy shares at close to current prices. Notably Ian Dighe was also the biggest seller.

Happily, we note that in the last year insiders paid UK£110k for 442.50k shares. But they sold 400.00k shares for UK£100k. In the last twelve months there was more buying than selling by Pennant International Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Pennant International Group Insiders Bought Stock Recently

We saw some Pennant International Group insider buying shares in the last three months. They bought UK£110k worth in that time. However, they netted UK£100k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Does Pennant International Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Pennant International Group insiders own 34% of the company, worth about UK£4.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Pennant International Group Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Pennant International Group insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Pennant International Group you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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

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.