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Quite a few insiders have dramatically grown their holdings in Paycor HCM, Inc. (NASDAQ:PYCR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Paycor HCM
Paycor HCM Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Raul Villar bought US$734k worth of shares at a price of US$29.35 per share. That means that an insider was happy to buy shares at above the current price of US$27.30. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Paycor HCM insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Paycor HCM Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Paycor HCM insiders own 0.4% of the company, worth about US$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Paycor HCM Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Paycor HCM shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Paycor HCM and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paycor HCM. In terms of investment risks, we've identified 1 warning sign with Paycor HCM and understanding this should be part of your investment process.