We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Piper Jaffray Companies (NYSE:PJC).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Piper Jaffray Companies
Chairman of the Board Andrew Duff made the biggest insider sale in the last 12 months. That single transaction was for US$4.7m worth of shares at a price of US$94.66 each. That is hardly a positive sign, even though it took place above the latest price (US$66.64). So it may not shed much light on insider confidence at current levels.
Over the last year, we note insiders sold 60.00k shares worth US$5.6m. Over the last year we saw more insider selling of Piper Jaffray Companies shares, than buying. The average sell price was around US$93.89. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$66.64). The chart below shows insider transactions 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!
I will like Piper Jaffray Companies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Piper Jaffray Companies
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. It’s great to see that Piper Jaffray Companies insiders own 4.9% of the company, worth about US$43m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Piper Jaffray Companies Insider Transactions Indicate?
The fact that there have been no Piper Jaffray Companies insider transactions recently certainly doesn’t bother us. The insider transactions at Piper Jaffray Companies are not very heartening. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in Piper Jaffray Companies, you should check out this free report on analyst forecasts for the company.
Of course Piper Jaffray Companies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.