When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in PCI-PAL PLC's (LON:PCIP) 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, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for PCI-PAL

PCI-PAL Insider Transactions Over The Last Year

The insider Thomas Good made the biggest insider purchase in the last 12 months. That single transaction was for UK£140k worth of shares at a price of UK£0.56 each. Even though the purchase was made at a significantly lower price than the recent price (UK£0.63), 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.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

PCI-PAL is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of PCI-PAL

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. 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 suggests PCI-PAL insiders own 4.4% of the company, worth about UK£2.0m. We consider this fairly low insider ownership.

So What Does This Data Suggest About PCI-PAL Insiders?

It doesn't really mean much that no insider has traded PCI-PAL shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think PCI-PAL insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for PCI-PAL (1 can't be ignored) you should be aware of.

But note: PCI-PAL may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.