Yahoo Finance Non-Executive Chairman Bronte Howson Just Bought 10% More Shares In PARKD Limited (ASX:PKD)
Even if it's not a huge purchase, we think it was good to see that Bronte Howson, the Non-Executive Chairman of PARKD Limited (ASX:PKD) recently shelled out AU$58k to buy stock, at AU$0.03 per share. That purchase might not be huge but it did increase their holding by 10%.
See our latest analysis for PARKD
PARKD Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Ian Thom, sold AU$80k worth of shares at a price of AU$0.02 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.039. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 62% of Ian Thom's holding. The only individual insider seller over the last year was Ian Thom.
Happily, we note that in the last year insiders paid AU$122k for 4.92m shares. But insiders sold 4.00m shares worth AU$80k. In the last twelve months there was more buying than selling by PARKD insiders. The average buy price was around AU$0.025. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. PARKD insiders own 69% of the company, currently worth about AU$2.0m based on the recent share price. 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 Do The PARKD Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PARKD. 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. Case in point: We've spotted 5 warning signs for PARKD you should be aware of, and 4 of these are potentially serious.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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