Whilst it may not be a huge deal, we thought it was good to see that the P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) Independent Director, W. Davis, recently bought US$51k worth of stock, for US$51.00 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 11%.
See our latest analysis for P.A.M. Transportation Services
The Last 12 Months Of Insider Transactions At P.A.M. Transportation Services
Notably, that recent purchase by W. Davis is the biggest insider purchase of P.A.M. Transportation Services shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$55.64. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the P.A.M. Transportation Services insider decided to buy shares at close to current prices. W. Davis was the only individual insider to buy shares in the last twelve months.
W. Davis bought 1.02k shares over the last 12 months at an average price of US$50.86. 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!
P.A.M. Transportation Services is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. P.A.M. Transportation Services insiders own about US$222m worth of shares (which is 70% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About P.A.M. Transportation Services Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest P.A.M. Transportation Services insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing P.A.M. Transportation Services. At Simply Wall St, we've found that P.A.M. Transportation Services has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.