Those following along with PQ Group Holdings Inc. (NYSE:PQG) will no doubt be intrigued by the recent purchase of shares by Belgacem Chariag, Chairman of the company, who spent a stonking US$509k on stock at an average price of US$9.51. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 21%.
PQ Group Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Belgacem Chariag is the biggest insider purchase of PQ Group Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$9.42. 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. To us, it's very important to consider the price insiders pay for shares is very important. 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.
Happily, we note that in the last year insiders paid US$706k for 66.41k shares. On the other hand they divested 12077 shares, for US$192k. In the last twelve months there was more buying than selling by PQ Group Holdings insiders. You can see the insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.5% of PQ Group Holdings shares, worth about US$33m. 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 Does This Data Suggest About PQ Group Holdings Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest PQ Group Holdings insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PQ Group Holdings. When we did our research, we found 2 warning signs for PQ Group Holdings (1 makes us a bit uncomfortable!) that we believe deserve your full attention.
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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