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Trade Alert: The Founder Of Pioneer Credit Limited (ASX:PNC), Keith John, Has Just Spent AU$52k Buying 1.2% More Shares

·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the Pioneer Credit Limited (ASX:PNC) Founder, Keith John, recently bought AU$52k worth of stock, for AU$0.38 per share. However, it only increased their shares held by 1.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Pioneer Credit

Pioneer Credit Insider Transactions Over The Last Year

Notably, that recent purchase by Founder Keith John was not the only time they bought Pioneer Credit shares this year. Earlier in the year, they paid AU$0.55 per share in a AU$1.5m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.34). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Pioneer Credit insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

Pioneer Credit 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.

Insider Ownership Of Pioneer Credit

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pioneer Credit insiders own about AU$6.6m worth of shares. That equates to 17% of the company. 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 Pioneer Credit Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Pioneer Credit insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Pioneer Credit has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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