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Insider Buying: The Pact Group Holdings Ltd (ASX:PGH) Non-Executive Chairman Just Bought 8.2% More Shares

·3 min read

Investors who take an interest in Pact Group Holdings Ltd (ASX:PGH) should definitely note that the Non-Executive Chairman, Raphael Geminder, recently paid AU$1.47 per share to buy AU$441k worth of the stock. Although the purchase only increased their holding by 8.2%, it is still a solid purchase in our view.

See our latest analysis for Pact Group Holdings

The Last 12 Months Of Insider Transactions At Pact Group Holdings

Notably, that recent purchase by Raphael Geminder is the biggest insider purchase of Pact Group Holdings 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 AU$1.61. 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. 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 Pact Group Holdings share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 342.82k shares worth AU$566k. But they sold 28.51k shares for AU$92k. In the last twelve months there was more buying than selling by Pact Group Holdings insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Pact Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Pact Group Holdings Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Pact Group Holdings insiders own about AU$8.2m worth of shares (which is 1.5% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Pact Group Holdings Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Pact Group Holdings insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Pact Group Holdings is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.

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