Quite a few insiders invested in Paragon Banking Group PLC (LON:PAG) last year which is positive news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Paragon Banking Group PLC's (LON:PAG) case, it's fantastic 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 Paragon Banking Group
The Last 12 Months Of Insider Transactions At Paragon Banking Group
The Independent Non-Executive Chairman Robert East made the biggest insider purchase in the last 12 months. That single transaction was for UK£49k worth of shares at a price of UK£4.90 each. So it's clear an insider wanted to buy, at around the current price, which is UK£5.05. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Paragon Banking Group share holders is that insiders were buying at near the current price.
In the last twelve months Paragon Banking Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Paragon Banking Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Paragon Banking Group Insiders Bought Stock Recently
It's good to see that Paragon Banking Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£53k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Paragon Banking Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. 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 Paragon Banking Group insiders own 0.9% of the company, worth about UK£9.8m. 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 Paragon Banking Group Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Paragon Banking Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paragon Banking Group. Case in point: We've spotted 3 warning signs for Paragon Banking Group you should be aware of, and 1 of them is a bit unpleasant.
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, 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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