Anyone interested in Pagaya Technologies Ltd. (NASDAQ:PGY) should probably be aware that the Chair of Advisory Board, Tami Rosen, recently divested US$289k worth of shares in the company, at an average price of US$9.90 each. The eyebrow raising move amounted to a reduction of 26% in their holding.
Pagaya Technologies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Revenue Officer Yahav Yulzari for US$610k worth of shares, at about US$10.17 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.90). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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.
Over the last year, we can see that insiders have bought 194.81k shares worth US$2.0m. On the other hand they divested 105.19k shares, for US$1.3m. Overall, Pagaya Technologies insiders were net buyers during 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!
Pagaya Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Pagaya Technologies insiders own 20% of the company, worth about US$144m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Pagaya Technologies Insider Transactions Indicate?
Insiders sold Pagaya Technologies shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Pagaya Technologies has 3 warning signs and it would be unwise to ignore them.
But note: Pagaya Technologies 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
