Have Insiders Sold Paragon Banking Group Shares Recently?

Some Paragon Banking Group PLC (LON:PAG) shareholders may be a little concerned to see that the CFO & Director, Richard Woodman, recently sold a substantial UK£789k worth of stock at a price of UK£7.78 per share. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.

Paragon Banking Group Insider Transactions Over The Last Year

In fact, the recent sale by Richard Woodman was the biggest sale of Paragon Banking Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of UK£7.73. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid UK£476k for 61.17k shares. But they sold 199.87k shares for UK£1.5m. In total, Paragon Banking Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Paragon Banking Group

I will like Paragon Banking Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Paragon Banking Group 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. Paragon Banking Group insiders own 5.1% of the company, currently worth about UK£78m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Paragon Banking Group Insiders?

The stark truth for Paragon Banking Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Paragon Banking Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 2 warning signs for Paragon Banking Group you should know about.

Of course Paragon Banking Group 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.