Even if it's not a huge purchase, we think it was good to see that John Dwyer, the Director of Broking & Executive Director of PSC Insurance Group Limited (ASX:PSI) recently shelled out AU$118k to buy stock, at AU$2.74 per share. That might not be a big purchase but it only increased their holding by 0.1%, and could be interpreted as a good sign.
PSC Insurance Group Insider Transactions Over The Last Year
The Executive Deputy Chairman, Paul Dwyer, made the biggest insider sale in the last 12 months. That single transaction was for AU$10m worth of shares at a price of AU$2.50 each. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$2.86. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 596% of Paul Dwyer's holding. Paul Dwyer was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid AU$253k for 93036 shares. But insiders sold 4200000 shares worth AU$10m. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like PSC Insurance Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that PSC Insurance Group insiders own 57% of the company, worth about AU$418m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About PSC Insurance Group Insiders?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders , suggests they are well aligned and optimistic. Of course, the future is what matters most. So if you are interested in PSC Insurance Group, you should check out this free report on analyst forecasts for the company.
But note: PSC Insurance Group 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.