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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 Pacgold Limited's (ASX:PGO) instance, it's good news for shareholders.
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 Pacgold
Pacgold Insider Transactions Over The Last Year
Notably, that recent purchase by Richard Hacker is the biggest insider purchase of Pacgold shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.084. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Pacgold insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Pacgold Insiders Bought Stock Recently
It's good to see that Pacgold insiders have made notable investments in the company's shares. In total, insiders bought AU$221k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Pacgold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.7% of Pacgold shares, worth about AU$1.1m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Pacgold Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Pacgold stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Pacgold is showing 5 warning signs in our investment analysis, and 4 of those are a bit concerning...