With PCI-PAL Up 11%, Insider Buyers Count Their Returns

PCI-PAL PLC (LON:PCIP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a UK£5.1m rise in the company's market capitalisation, translating to a gain of 23% on their initial investment. In other words, the original UK£172.1k purchase is now worth UK£211.7k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for PCI-PAL

The Last 12 Months Of Insider Transactions At PCI-PAL

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. Even though the purchase was made at a significantly lower price than the recent price (UK£0.69), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While PCI-PAL insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insider Ownership Of PCI-PAL

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£2.2m worth of PCI-PAL stock, about 4.4% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About PCI-PAL Insiders?

The fact that there have been no PCI-PAL insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. 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. 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. Be aware that PCI-PAL is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.