Insiders in Parkland Corporation (TSE:PKI) are down 15% on their CA$1.9m purchase despite recent gains
Insiders who bought CA$1.9m worth of Parkland Corporation (TSE:PKI) stock in the last year recovered part of their losses as the stock rose by 4.0% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$285k since the time of purchase.
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.
View our latest analysis for Parkland
Parkland Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman James Pantelidis bought CA$495k worth of shares at a price of CA$34.69 per share. That means that an insider was happy to buy shares at above the current price of CA$26.72. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Parkland insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Parkland is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Parkland Insiders Bought Stock Recently
Over the last quarter, Parkland insiders have spent a meaningful amount on shares. Overall, three insiders shelled out CA$681k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership Of Parkland
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.4% of Parkland shares, worth about CA$65m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Parkland Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Parkland we think they are probably pretty confident of 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. At Simply Wall St, we've found that Parkland has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Parkland 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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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.
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