Insider Sellers Might Regret Selling PS International Group Shares at a Lower Price Than Current Market Value

PS International Group Ltd.'s (NASDAQ:PSIG) value has fallen 10% in the last week, but insiders who sold US$919k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$2.27 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for PS International Group

PS International Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Kin Yin Kwong, sold US$919k worth of shares at a price of US$2.59 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$0.77. So it may not shed much light on insider confidence at current levels. Kin Yin Kwong was the only individual insider to sell shares in the last twelve months. Notably Kin Yin Kwong was also the biggest buyer, having purchased US$27k worth of shares.

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!

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Insiders At PS International Group Have Sold Stock Recently

There was substantially more insider selling, than buying, of PS International Group shares over the last three months. In total, insider Kin Yin Kwong sold US$919k worth of shares in that time. On the other hand we note insider Kin Yin Kwong bought US$27k worth of shares , as previously mentioned . We don't view these transactions as a positive sign.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. PS International Group insiders own 67% of the company, currently worth about US$13m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About PS International Group Insiders?

The insider sales have outweighed the insider buying, at PS International Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that PS International Group is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, PS International Group has 5 warning signs (and 3 which are concerning) we think you should know about.

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 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.