Yahoo Finance Trade Alert: The CEO & Executive Director Of Pan African Resources PLC (LON:PAF), Jacobus Albertus Loots, Has Just Spent US$6.8m Buying 5.4% More Shares
Those following along with Pan African Resources PLC (LON:PAF) will no doubt be intrigued by the recent purchase of shares by Jacobus Albertus Loots, CEO & Executive Director of the company, who spent a stonking UK£6.8m on stock at an average price of UK£20.46. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 5.4%.
Check out our latest analysis for Pan African Resources
Pan African Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Jacobus Albertus Loots is the biggest insider purchase of Pan African Resources shares that we've seen in the last year. That means that even when the share price was higher than UK£0.19 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Jacobus Albertus Loots was also the biggest seller.
In the last twelve months insiders purchased 8.26m shares for 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£0.99. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pan African Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Pan African Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Pan African Resources insiders own 0.6% of the company, worth about UK£2.4m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Pan African Resources Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Pan African Resources insiders are expecting a bright future. 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. You'd be interested to know, that we found 1 warning sign for Pan African Resources and we suggest you have a look.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
