Trade Alert: Chief Financial Officer Of Pagaya Technologies Evangelos Perros Has Sold Stock

We'd be surprised if Pagaya Technologies Ltd. (NASDAQ:PGY) shareholders haven't noticed that the Chief Financial Officer, Evangelos Perros, recently sold US$137k worth of stock at US$12.15 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Pagaya Technologies

Pagaya Technologies Insider Transactions Over The Last Year

The Chief Revenue Officer Yahav Yulzari made the biggest insider purchase in the last 12 months. That single transaction was for US$610k worth of shares at a price of US$10.17 each. We do like to see buying, but this purchase was made at well below the current price of US$13.64. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 194.81k shares worth US$2.0m. On the other hand they divested 16.04k shares, for US$194k. In the last twelve months there was more buying than selling by Pagaya Technologies insiders. 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!

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

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. We usually like to see fairly high levels of insider ownership. Pagaya Technologies insiders own 20% of the company, currently worth about US$190m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Pagaya Technologies Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pagaya Technologies. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pagaya Technologies. In terms of investment risks, we've identified 2 warning signs with Pagaya Technologies and understanding them should be part of your investment process.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com