Chief Executive & Director of Paragon Banking Group Nigel Terrington Buys 2.2% More Shares

Investors who take an interest in Paragon Banking Group PLC (LON:PAG) should definitely note that the Chief Executive & Director, Nigel Terrington, recently paid UK£7.85 per share to buy UK£238k worth of the stock. Although the purchase only increased their holding by 2.2%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At Paragon Banking Group

In the last twelve months, the biggest single sale by an insider was when the CFO & Director, Richard Woodman, sold UK£789k worth of shares at a price of UK£7.78 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£7.89. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 17% of Richard Woodman's stake.

Happily, we note that in the last year insiders paid UK£556k for 70.22k shares. But they sold 186.87k shares for UK£1.5m. Over the last year we saw more insider selling of Paragon Banking Group shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Paragon Banking Group

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. We usually like to see fairly high levels of insider ownership. Insiders own 4.4% of Paragon Banking Group shares, worth about UK£67m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Paragon Banking Group, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paragon Banking Group. In terms of investment risks, we've identified 1 warning sign with Paragon Banking Group and understanding this should be part of your investment process.

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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.