Even if it's not a huge purchase, we think it was good to see that Gideon Louw, the Financial Director & Executive Director of Pan African Resources PLC (LON:PAF) recently shelled out UK£38k to buy stock, at UK£0.17 per share. Although the purchase is not a big one, increasing their shareholding by only 6.0%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Pan African Resources
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Jacobus Albertus Loots bought UK£6.8m worth of shares at a price of UK£20.46 per share. That means that even when the share price was higher than UK£0.16 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Jacobus Albertus Loots was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 8.48m shares worth UK£8.2m. But they sold 347.77k shares for UK£521k. Overall, Pan African Resources insiders were net buyers during the last year. The average buy price was around UK£0.97. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Pan African Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Pan African Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Pan African Resources insiders have about 0.7% of the stock, worth approximately UK£2.2m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Pan African Resources Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Pan African Resources insiders bought more shares in the company. 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 Pan African Resources and understanding these should be part of your investment process.
But note: Pan African Resources 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.
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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