Insiders at PaySign, Inc. (NASDAQ:PAYS) must be relieved they sold stock as market valuation descends to US$95m

Over the past year, insiders sold US$155k worth of PaySign, Inc. (NASDAQ:PAYS) stock at an average price of US$3.10 per share allowing them to get the most out of their money. The company's market worth decreased by US$11m over the past week after the stock price dropped 10%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for PaySign

The Last 12 Months Of Insider Transactions At PaySign

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Mark Newcomer, sold US$125k worth of shares at a price of US$3.16 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.83. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in PaySign 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!

I will like PaySign 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 PaySign

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 39% of PaySign shares, worth about US$37m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At PaySign Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of PaySign insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. Case in point: We've spotted 3 warning signs for PaySign you should be aware of.

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, 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.