Even if it's not a huge purchase, we think it was good to see that Mark Bloom, the Non-Executive Director of Pacific Smiles Group Limited (ASX:PSQ) recently shelled out AU$101k to buy stock, at AU$2.65 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 16%.

See our latest analysis for Pacific Smiles Group

The Last 12 Months Of Insider Transactions At Pacific Smiles Group

In fact, the recent purchase by Non-Executive Director Mark Bloom was not their only acquisition of Pacific Smiles Group shares this year. They previously made an even bigger purchase of AU$185k worth of shares at a price of AU$1.85 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$2.76), 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 Pacific Smiles Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Pacific Smiles Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Pacific Smiles Group insiders own about AU$140m worth of shares (which is 34% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Pacific Smiles Group Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pacific Smiles Group. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Pacific Smiles Group and understanding these should be part of your investment process.

Of course Pacific Smiles Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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. 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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