PAR Technology Independent Director Douglas Rauch Sells 33% Of Holding

We'd be surprised if PAR Technology Corporation (NYSE:PAR) shareholders haven't noticed that the Independent Director, Douglas Rauch, recently sold US$189k worth of stock at US$42.04 per share. The eyebrow raising move amounted to a reduction of 33% in their holding.

Check out our latest analysis for PAR Technology

The Last 12 Months Of Insider Transactions At PAR Technology

Notably, that recent sale by Douglas Rauch is the biggest insider sale of PAR Technology shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$41.42. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Douglas Rauch divested 8.70k shares over the last 12 months at an average price of US$41.00. 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!

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Does PAR Technology 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. PAR Technology insiders own about US$17m worth of shares. That equates to 1.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The PAR Technology Insider Transactions Indicate?

An insider hasn't bought PAR Technology stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PAR Technology. While conducting our analysis, we found that PAR Technology has 3 warning signs and it would be unwise to ignore these.

Of course PAR Technology may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.