Quite a few insiders invested in PCI-PAL PLC (LON:PCIP) last year which is positive news for shareholders

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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of PCI-PAL PLC (LON:PCIP), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for PCI-PAL

The Last 12 Months Of Insider Transactions At PCI-PAL

Over the last year, we can see that the biggest insider purchase was by CFO, Secretary & Executive Director Thomas Good for UK£74k worth of shares, at about UK£0.59 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.57). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While PCI-PAL insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
AIM:PCIP Insider Trading Volume August 14th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does PCI-PAL Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that PCI-PAL insiders own about UK£3.1m worth of shares (which is 8.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The PCI-PAL Insider Transactions Indicate?

The fact that there have been no PCI-PAL insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if PCI-PAL insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PCI-PAL. At Simply Wall St, we found 2 warning signs for PCI-PAL that deserve your attention before buying any shares.