Positive Signs As Multiple Insiders Buy Pason Systems Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Pason Systems Inc. (TSE:PSI), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Pason Systems
The Last 12 Months Of Insider Transactions At Pason Systems
In the last twelve months, the biggest single purchase by an insider was when Vice President of Operations Bryce McLean bought CA$292k worth of shares at a price of CA$12.90 per share. That implies that an insider found the current price of CA$13.85 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Pason Systems share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 28.17k shares worth CA$347k. But they sold 2.20k shares for CA$34k. In total, Pason Systems 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pason Systems is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Pason Systems Insiders Are Selling The Stock
The last three months saw some Pason Systems insider selling. insider Kevin Boston only netted CA$14k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Insider Ownership
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. From looking at our data, insiders own CA$2.4m worth of Pason Systems stock, about 0.2% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Pason Systems Insiders?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Pason Systems stock. 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. Our analysis shows 2 warning signs for Pason Systems (1 can't be ignored!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
