Whilst it may not be a huge deal, we thought it was good to see that the Paragon Banking Group PLC (LON:PAG) Chief Executive & Director, Nigel Terrington, recently bought UK£64k worth of stock, for UK£3.20 per share. Although the purchase is not a big one, increasing their shareholding by only 2.5%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Paragon Banking Group
Over the last year, we can see that the biggest insider sale was by the Senior Independent Director, Hugo Tudor, for UK£143k worth of shares, at about UK£4.77 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (UK£3.32). So it may not tell us anything about how insiders feel about the current share price. Hugo Tudor was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 54.42k shares worth UK£179k. On the other hand they divested 30.00k shares, for UK£143k. In the last twelve months there was more buying than selling by Paragon Banking Group insiders. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. From looking at our data, insiders own UK£3.8m worth of Paragon Banking Group stock, about 0.4% of the company. We prefer to see high levels of insider ownership.
So What Do The Paragon Banking Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Paragon Banking Group insiders are reasonably well aligned, and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
This article by Simply Wall St is general in nature. 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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