Trade Alert: The Independent Director Of P.A.M. Transportation Services, Inc. (NASDAQ:PTSI), W. Davis, Has Just Spent US$51k Buying 11% More Shares

Even if it's not a huge purchase, we think it was good to see that W. Davis, the Independent Director of P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) recently shelled out US$51k to buy stock, at US$51.00 per share. That purchase might not be huge but it did increase their holding by 11%.

View our latest analysis for P.A.M. Transportation Services

The Last 12 Months Of Insider Transactions At P.A.M. Transportation Services

Notably, that recent purchase by W. Davis is the biggest insider purchase of P.A.M. Transportation Services shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$55.64. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the P.A.M. Transportation Services insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was W. Davis.

W. Davis bought a total of 1.02k shares over the year at an average price of US$50.86. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

P.A.M. Transportation Services is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that P.A.M. Transportation Services insiders own 70% of the company, worth about US$222m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At P.A.M. Transportation Services Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest P.A.M. Transportation Services insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. To that end, you should learn about the 3 warning signs we've spotted with P.A.M. Transportation Services (including 1 which is potentially serious).

But note: P.A.M. Transportation Services 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, but not derivative transactions.

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