Insider Buyers Lose US$296k As Pinstripes Holdings Sheds US$8.2m

Insiders who bought US$343.0k worth of Pinstripes Holdings Inc.'s (NYSE:PNST) stock at an average buy price of US$3.43 over the last year may be disappointed by the recent 26% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$46.7k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Pinstripes Holdings

The Last 12 Months Of Insider Transactions At Pinstripes Holdings

The Chief Financial Officer Anthony Querciagrossa made the biggest insider purchase in the last 12 months. That single transaction was for US$343k worth of shares at a price of US$3.43 each. That means that even when the share price was higher than US$0.47 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Anthony Querciagrossa was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Pinstripes Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Pinstripes Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 34% of Pinstripes Holdings shares, worth about US$8.7m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Pinstripes Holdings Tell Us?

The fact that there have been no Pinstripes Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Pinstripes Holdings and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Pinstripes Holdings is showing 7 warning signs in our investment analysis, and 5 of those don't sit too well with us...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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