Nigel Terrington Bought 2.0% More Shares In Paragon Banking Group

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£7.90 per share to buy UK£213k worth of the stock. Although the purchase only increased their holding by 2.0%, it is still a solid purchase in our view.

View our latest analysis for Paragon Banking Group

Paragon Banking Group Insider Transactions Over The Last Year

Notably, that recent purchase by Chief Executive & Director Nigel Terrington was not the only time they traded Paragon Banking Group shares this year. They previously made a sale of -UK£414k worth of shares at a price of UK£7.06 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£8.04. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 4.3% of Nigel Terrington's holding.

Over the last year, we can see that insiders have bought 77.11k shares worth UK£582k. On the other hand they divested 113.72k shares, for UK£814k. In total, Paragon Banking Group insiders sold more than they bought over the last year. 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!

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Does Paragon Banking Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Paragon Banking Group insiders own 5.2% of the company, currently worth about UK£85m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. 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. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paragon Banking Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Paragon Banking Group.

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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.