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Paltalk, Inc. (NASDAQ:PALT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a US$2.9m rise in the company's market capitalisation, translating to a gain of 15% on their initial investment. As a result, their original purchase of US$75.8k worth of stock is now worth US$87.2k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Paltalk
Paltalk Insider Transactions Over The Last Year
The Founder Jason Katz made the biggest insider purchase in the last 12 months. That single transaction was for US$68k worth of shares at a price of US$2.73 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.17. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Paltalk insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Paltalk 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 Paltalk Have Bought Stock Recently
It's good to see that Paltalk insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$76k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Paltalk Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Paltalk insiders own 11% of the company, worth about US$3.3m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Paltalk Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Paltalk insiders are expecting a bright future. 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. Our analysis shows 4 warning signs for Paltalk (2 can't be ignored!) and we strongly recommend you look at these before investing.