With stock up 15%, Insiders of PGS ASA (OB:PGS) must be wishing they had bought more last year

PGS ASA (OB:PGS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 15% resulting in a kr1.1b addition to the company’s market value. Put another way, the original US$4.4m acquisition is now worth US$6.3m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for PGS

PGS Insider Transactions Over The Last Year

The CFO & Executive VP Gottfred Langseth made the biggest insider purchase in the last 12 months. That single transaction was for kr2.0m worth of shares at a price of kr6.70 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr9.65. 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.

PGS insiders may have bought shares in the last year, but they didn't sell any. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of PGS

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests PGS insiders own 0.2% of the company, worth about kr22m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About PGS Insiders?

It doesn't really mean much that no insider has traded PGS shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think PGS insiders are doubting the company, and they do own shares. While we like knowing 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 PGS is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...

But note: PGS may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.