Have Insiders Sold Pan African Resources Shares Recently?

Some Pan African Resources PLC (LON:PAF) shareholders may be a little concerned to see that the CEO & Executive Director, Jacobus Albertus Loots, recently sold a substantial UK£460k worth of stock at a price of UK£0.77 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.5%.

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Pan African Resources Insider Transactions Over The Last Year

In fact, the recent sale by Jacobus Albertus Loots was the biggest sale of Pan African Resources shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of UK£0.84, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 8.5% of Jacobus Albertus Loots's stake.

Jacobus Albertus Loots sold a total of 1.02m shares over the year at an average price of US$0.65. 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!

See our latest analysis for Pan African Resources

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Insider Ownership Of Pan African Resources

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Pan African Resources insiders own 0.5% of the company, worth about UK£8.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Pan African Resources Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Pan African Resources makes money, and is growing profits. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very 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. When we did our research, we found 2 warning signs for Pan African Resources (1 is concerning!) that we believe deserve your full attention.

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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.