In the last year, multiple insiders have substantially increased their holdings of PSG Financial Services Limited (JSE:KST) stock, indicating that insiders’ optimism about the company’s prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
PSG Financial Services Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive director Petrus Mouton bought R9.6m worth of shares at a price of R28.72 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being R28.55). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
PSG Financial Services insiders may have bought shares in the last year, but they didn’t sell any. 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!
See our latest analysis for PSG Financial Services
PSG Financial Services is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At PSG Financial Services Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at PSG Financial Services. Overall, two insiders shelled out R10m for shares in the company — and none sold. That shows some optimism about the company’s future.
Does PSG Financial Services 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that PSG Financial Services insiders own 22% of the company, worth about R7.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
Read More: PSG Financial Services Insiders Added R10.0m Of Stock To Their Holdings
