We note that the Priority Technology Holdings, Inc. (NASDAQ:PRTH) Executive Chairman, Thomas Priore, recently sold US$91k worth of stock for US$5.07 per share. However we note that the sale only shrunk their holding by 0.04%.
Priority Technology Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Executive Chairman Thomas Priore was not their only trade of Priority Technology Holdings shares this year. They previously purchased US$2.1m worth of shares at a price of US$3.56 per share. Even though the purchase was made at a significantly lower price than the recent price (US$5.13), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$2.2m for 608.19k shares. But insiders sold 716.06k shares worth US$2.6m. All up, insiders sold more shares in Priority Technology Holdings than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Priority Technology Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Priority Technology Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Priority Technology Holdings insiders own 76% of the company, currently worth about US$299m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Priority Technology Holdings Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. While we gain confidence from high insider ownership of Priority Technology Holdings, we can't say the same about their transactions in the last year, in the absence of further purchases. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Priority Technology Holdings. To that end, you should learn about the 2 warning signs we've spotted with Priority Technology Holdings (including 1 which is concerning).
But note: Priority Technology 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 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.
