Hopeful Week For Insiders Who Bought US$514.8k Of Paragon 28 Stock

Insiders who bought US$514.8k worth of Paragon 28, Inc. (NYSE:FNA) stock in the last year have seen some of their losses recouped as the stock gained 39% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$91k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Paragon 28

The Last 12 Months Of Insider Transactions At Paragon 28

The Co-Founder Albert DaCosta made the biggest insider purchase in the last 12 months. That single transaction was for US$260k worth of shares at a price of US$8.51 each. That means that an insider was happy to buy shares at above the current price of US$7.24. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Albert DaCosta was the only individual insider to buy shares in the last twelve months.

Albert DaCosta bought 58.50k shares over the last 12 months at an average price of US$8.80. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Paragon 28 Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Paragon 28 insiders own 23% of the company, worth about US$120m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Paragon 28 Tell Us?

It doesn't really mean much that no insider has traded Paragon 28 shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Paragon 28 insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paragon 28. For instance, we've identified 3 warning signs for Paragon 28 (1 can't be ignored) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.