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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in PayPoint plc's (LON:PAY) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for PayPoint
PayPoint Insider Transactions Over The Last Year
The CEO, Member of Executive Board & Executive Director Nicholas Wiles made the biggest insider purchase in the last 12 months. That single transaction was for UK£95k worth of shares at a price of UK£6.36 each. That means that even when the share price was higher than UK£5.74 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
While PayPoint insiders bought shares during the last year, they didn't sell. 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!
PayPoint is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does PayPoint 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. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at PayPoint, though insiders do hold about UK£624k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About PayPoint Insiders?
It doesn't really mean much that no insider has traded PayPoint shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think PayPoint insiders are doubting the company. 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. Every company has risks, and we've spotted 3 warning signs for PayPoint (of which 1 is concerning!) you should know about.