Yahoo Finance Bullish P.A.M. Transportation Services Insiders Loaded Up On US$134.9m Of Stock
Multiple insiders secured a larger position in P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for P.A.M. Transportation Services
The Last 12 Months Of Insider Transactions At P.A.M. Transportation Services
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Matthew Moroun bought US$135m worth of shares at a price of US$21.23 per share. That means that an insider was happy to buy shares at above the current price of US$18.37. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. We note that Matthew Moroun was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 6.36m shares worth US$135m. But they sold 6.35m shares for US$135m. In the last twelve months there was more buying than selling by P.A.M. Transportation Services insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
P.A.M. Transportation Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of P.A.M. Transportation Services
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. P.A.M. Transportation Services insiders own 74% of the company, currently worth about US$302m 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.
So What Does This Data Suggest About P.A.M. Transportation Services Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, P.A.M. Transportation Services insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing P.A.M. Transportation Services. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of P.A.M. Transportation Services.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
