Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Pacific Current Group Limited (ASX:PAC), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Pacific Current Group

The Last 12 Months Of Insider Transactions At Pacific Current Group

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Jeremiah Chafkin bought AU$268k worth of shares at a price of AU$7.46 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$7.51. Of course they may have changed their mind. But this suggests they are optimistic. 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 Pacific Current Group insiders decided to buy shares at close to current prices.

While Pacific Current 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! insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.

Insiders at Pacific Current Group Have Bought Stock Recently

Over the last quarter, Pacific Current Group insiders have spent a meaningful amount on shares. In total, insiders bought AU$381k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.



Does Pacific Current Group Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Pacific Current Group shares, worth about AU$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Pacific Current Group Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Pacific Current Group shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Pacific Current Group has 2 warning signs and it would be unwise to ignore them.

But note: Pacific Current Group may not be the best stock to buy. So take a peek at this freelist 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.