It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in ParcelPal Technology Inc. (CNSX:PKG).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At ParcelPal Technology
In the last twelve months, the biggest single sale by an insider was when Founder Kelly Abbott sold CA$560k worth of shares at a price of CA$0.35 per share. That is hardly a positive sign, even though it took place above the latest price (CA$0.28). So it is hard to draw any strong conclusion from it. Notably Kelly Abbott was also the biggest buyer, having purchased CA$877k worth of shares.
In the last twelve months insiders purchased 3.19m shares for CA$877k. On the other hand they divested 2.35m shares, for CA$816k. Overall, ParcelPal Technology insiders were net buyers last year. They paid about CA$0.27 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of CA$0.28. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at ParcelPal Technology Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at ParcelPal Technology. Insiders purchased CA$27k worth of shares in that period. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership of ParcelPal Technology
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 8.2% of ParcelPal Technology shares, worth about CA$1.8m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The ParcelPal Technology Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if ParcelPal Technology insiders bought more shares in the company. Along with insider transactions, I recommend checking if ParcelPal Technology is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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