Insider Stock Buying Reaches US$665.9k On Pennant Group
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in The Pennant Group, Inc.'s (NASDAQ:PNTG) instance, it's good news for shareholders.
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.
View our latest analysis for Pennant Group
Pennant Group Insider Transactions Over The Last Year
The Independent Chairman Barry Smith made the biggest insider purchase in the last 12 months. That single transaction was for US$383k worth of shares at a price of US$15.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.61). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Pennant Group insiders bought shares during the last year, they didn't sell. They paid about US$13.00 on average. These transactions suggest that insiders have considered the current price attractive. 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!
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.
Does Pennant Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Pennant Group insiders own 3.9% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Pennant Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Pennant Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Pennant Group and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Pennant Group, you should check out this free report on analyst forecasts for the company.
Of course Pennant Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
