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Quite a few insiders have dramatically grown their holdings in Pollard Banknote Limited (TSE:PBL) 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.
View our latest analysis for Pollard Banknote
The Last 12 Months Of Insider Transactions At Pollard Banknote
The Co-CEO & Director John Pollard made the biggest insider purchase in the last 12 months. That single transaction was for CA$187m worth of shares at a price of CA$32.50 each. That means that an insider was happy to buy shares at above the current price of CA$23.97. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$562m for 17.31m shares. But they sold 25.10k shares for CA$834k. In the last twelve months there was more buying than selling by Pollard Banknote insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Pollard Banknote is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Pollard Banknote Have Sold Stock Recently
The last three months saw significant insider selling at Pollard Banknote. Specifically, Executive VP of Legal Affairs Riva Richard ditched CA$135k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of Pollard Banknote
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Pollard Banknote insiders own 64% of the company, currently worth about CA$415m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.