Yahoo Finance Recent gains in PayPal Holdings, Inc. (NASDAQ:PYPL) help add back some value on insider purchases worth US$3.7m, still down US$1.3m
Insiders who bought US$3.7m worth of PayPal Holdings, Inc. (NASDAQ:PYPL) stock in the last year have seen some of their losses recouped as the stock gained 3.2% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$1.3m.
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 PayPal Holdings
PayPal Holdings Insider Transactions Over The Last Year
The Executive Vice President of Global Sales, Peggy Alford, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$97.82 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$71.22. So it may not shed much light on insider confidence at current levels. Peggy Alford was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 33.36k shares worth US$3.7m. But they sold 21.79k shares for US$2.1m. In total, PayPal Holdings insiders bought more than they sold over the last year. 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!
PayPal Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does PayPal Holdings Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that PayPal Holdings insiders own 0.1% of the company, worth about US$100m. 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 PayPal Holdings Insider Transactions Indicate?
The fact that there have been no PayPal Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, PayPal Holdings insiders feel good about the company's future. 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. At Simply Wall St, we found 2 warning signs for PayPal Holdings that deserve your attention before buying any shares.
But note: PayPal Holdings 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.
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