Reversal Of Fortune For Proficient Auto Logistics Insiders Who Made A US$885.5k Purchase

Insiders who purchased US$885.5k worth of Proficient Auto Logistics, Inc. (NASDAQ:PAL) shares over the past year recouped some of their losses after price gained 12% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$286k since the time of purchase.

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.

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Proficient Auto Logistics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Richard O'Dell bought US$497k worth of shares at a price of US$9.20 per share. That means that an insider was happy to buy shares at above the current price of US$7.97. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Richard O'Dell was also the biggest seller.

Happily, we note that in the last year insiders paid US$886k for 75.20k shares. But insiders sold 49.30k shares worth US$406k. Overall, Proficient Auto Logistics insiders were net buyers during the last year. The average buy price was around US$11.78. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Proficient Auto Logistics

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

Insiders At Proficient Auto Logistics Have Sold Stock Recently

We've seen more insider selling than insider buying at Proficient Auto Logistics recently. In total, CEO & Director Richard O'Dell sold US$406k worth of shares in that time. On the flip side, President & COO Amy Rice spent US$9.1k on purchasing shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership Of Proficient Auto Logistics

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. Insiders own 28% of Proficient Auto Logistics shares, worth about US$57m. 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 Does This Data Suggest About Proficient Auto Logistics Insiders?

The stark truth for Proficient Auto Logistics is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Proficient Auto Logistics.

But note: Proficient Auto Logistics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.