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PSQ Holdings, Inc. (NYSE:PSQH) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a US$17m addition to the company’s market value. As a result, their original purchase of US$3.25m worth of stock is now worth US$3.73m.
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 PSQ Holdings
PSQ Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Kelly Loeffler is the biggest insider purchase of PSQ Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$3.10), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does PSQ Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 32% of PSQ Holdings shares, worth about US$33m. 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 Does This Data Suggest About PSQ Holdings Insiders?
It's certainly positive to see the recent insider purchase. 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. Insiders likely see value in PSQ Holdings shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that PSQ Holdings has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.