Insiders at Pegasystems Inc. (NASDAQ:PEGA) sold US$148k worth of stock at an average price of US$119 a share over the past year, making the most of their investment. The company’s market valuation decreased by US$231m after the stock price dropped 5.7% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Pegasystems
In the last twelve months, the biggest single sale by an insider was when the insider, Stathis Kouninis, sold US$66k worth of shares at a price of US$133 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$46.53. So it is hard to draw any strong conclusion from it. Stathis Kouninis was the only individual insider to sell shares in the last twelve months.
Stathis Kouninis ditched 1.25k shares over the year. The average price per share was US$119. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Pegasystems insiders own 50% of the company, currently worth about US$1.9b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Pegasystems Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. It’s heartening that insiders own plenty of stock, but we’d like to see more insider buying, since the last year of Pegasystems insider transactions don’t fill us with confidence. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Pegasystems. For example, Pegasystems has 2 warning signs (and 1 which doesn’t sit too well with us) we think you should know about.
But note: Pegasystems 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.
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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.