Quite a few insiders have dramatically grown their holdings in Paycor HCM, Inc. (NASDAQ:PYCR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Paycor HCM
In the last twelve months, the biggest single purchase by an insider was when Chief Revenue Officer Charles Mueller bought US$1.3m worth of shares at a price of US$23.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$31.62. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Paycor HCM insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 growing companies that insiders are buying.
Insiders at Paycor HCM Have Bought Stock Recently
It's good to see that Paycor HCM insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$2.1m worth of shares. This could be interpreted as suggesting a positive outlook.
Does Paycor HCM Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Paycor HCM insiders own 0.05% of the company, worth about US$2.9m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Paycor HCM Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Paycor HCM insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Paycor HCM has 2 warning signs and it would be unwise to ignore them.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.