Positive Signs As Multiple Insiders Buy Pitney Bowes Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Pitney Bowes Inc.'s (NYSE:PBI) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Pitney Bowes
Pitney Bowes Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Carl Grassi bought US$104k worth of shares at a price of US$4.18 per share. That means that even when the share price was higher than US$3.56 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Pitney Bowes insiders bought shares during the last year, they didn't sell. The average buy price was around US$3.72. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Pitney Bowes is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Pitney Bowes Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Pitney Bowes insiders own 3.7% of the company, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Pitney Bowes Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Pitney Bowes and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Pitney Bowes is showing 4 warning signs in our investment analysis, and 2 of those shouldn't be ignored...
But note: Pitney Bowes may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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