This Insider Has Just Sold Shares In PaySauce

Anyone interested in PaySauce Limited (NZSE:PYS) should probably be aware that the Co-Founder & CTO, Troy Tarrant, recently divested NZ$191k worth of shares in the company, at an average price of NZ$0.26 each. However, the silver lining is that the sale only reduced their total holding by 4.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for PaySauce

The Last 12 Months Of Insider Transactions At PaySauce

Notably, that recent sale by Troy Tarrant is the biggest insider sale of PaySauce shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of NZ$0.23. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid NZ$120k for 409.15k shares. But they sold 954.28k shares for NZ$244k. In total, PaySauce insiders sold more than they bought over the last year. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does PaySauce 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. I reckon it's a good sign if insiders own a significant number of shares in the company. PaySauce insiders own 50% of the company, currently worth about NZ$17m 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.

So What Do The PaySauce Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at PaySauce, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PaySauce. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in PaySauce.

But note: PaySauce 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 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.