Bullish P.A.M. Transportation Services Insiders Loaded Up On US$133m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in P.A.M. Transportation Services, Inc. (NASDAQ:PTSI). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for P.A.M. Transportation Services
The Last 12 Months Of Insider Transactions At P.A.M. Transportation Services
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Matthew Moroun bought US$133m worth of shares at a price of US$20.99 per share. That implies that an insider found the current price of US$21.21 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for P.A.M. Transportation Services share holders is that insiders were buying at near the current price. Notably Matthew Moroun was also the biggest seller.
Happily, we note that in the last year insiders paid US$133m for 6.36m shares. But insiders sold 6.35m shares worth US$133m. In total, P.A.M. Transportation Services insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders At P.A.M. Transportation Services Have Bought Stock Recently
There was some insider buying at P.A.M. Transportation Services over the last quarter. They bought US$133m worth in that time. But Chairman of the Board Matthew Moroun sold US$133m worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership Of P.A.M. Transportation Services
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. P.A.M. Transportation Services insiders own about US$344m worth of shares (which is 74% of the company). 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 Do The P.A.M. Transportation Services Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like P.A.M. Transportation Services insiders think the business has merit. 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. Case in point: We've spotted 1 warning sign for P.A.M. Transportation Services you should be aware of.
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 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.
