Multiple insiders bought Pan African Resources PLC (LON:PAF) stock earlier this year, a positive sign for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Pan African Resources PLC's (LON:PAF) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Pan African Resources
Pan African Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Jacobus Albertus Loots for UK£51k worth of shares, at about UK£0.17 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.21. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Pan African Resources insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pan African Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Pan African Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Pan African Resources insiders have about 0.7% of the stock, worth approximately UK£2.9m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Pan African Resources Tell Us?
The fact that there have been no Pan African Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Pan African Resources insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Pan African Resources and understanding them should be part of your investment process.
Of course Pan African Resources 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, but not derivative transactions.
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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.
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