Positive Signs As Multiple Insiders Buy PCI-PAL Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in PCI-PAL PLC's (LON:PCIP) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for PCI-PAL

PCI-PAL Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Thomas Good bought UK£140k worth of shares at a price of UK£0.56 per share. That implies that an insider found the current price of UK£0.57 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. Happily, the PCI-PAL insiders decided to buy shares at close to current prices.

In the last twelve months PCI-PAL 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Does PCI-PAL 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that PCI-PAL insiders own about UK£3.3m worth of shares (which is 8.0% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The PCI-PAL Insider Transactions Indicate?

The fact that there have been no PCI-PAL insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think PCI-PAL insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PCI-PAL. For example, PCI-PAL has 5 warning signs (and 1 which is concerning) we think you should know about.

Of course PCI-PAL 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.