We wouldn't blame Priority Technology Holdings, Inc. (NASDAQ:PRTH) shareholders if they were a little worried about the fact that John Priore, the Director recently netted about US$2.1m selling shares at an average price of US$3.56. However, that sale only accounted for 6.4% of their holding, so arguably it doesn't say much about their conviction.
Priority Technology Holdings Insider Transactions Over The Last Year
Notably, that recent sale by John Priore is the biggest insider sale of Priority Technology Holdings shares that we've seen in the last year. That means that even when the share price was below the current price of US$4.48, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 6.4% of John Priore's holding.
All up, insiders sold more shares in Priority Technology Holdings than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. I reckon it's a good sign if insiders own a significant number of shares in the company. Priority Technology Holdings insiders own 72% of the company, currently worth about US$251m 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 Priority Technology Holdings Insiders?
The insider sales have outweighed the insider buying, at Priority Technology Holdings, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Every company has risks, and we've spotted 3 warning signs for Priority Technology Holdings you should know about.
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.
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