This Insider Has Just Sold Shares In PagSeguro Digital
We wouldn't blame PagSeguro Digital Ltd. (NYSE:PAGS) shareholders if they were a little worried about the fact that Alexandre Magnani, the Independent Director recently netted about US$1.1m selling shares at an average price of US$10.60. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At PagSeguro Digital
In the last twelve months, the biggest single purchase by an insider was when insider Luis Frias bought US$5.0m worth of shares at a price of US$9.99 per share. Even though the purchase was made at a significantly lower price than the recent price (US$11.16), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for PagSeguro Digital
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. PagSeguro Digital insiders own 3.8% of the company, currently worth about US$116m 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 PagSeguro Digital Insiders?
Insiders sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're happy to look past recent trading. 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. At Simply Wall St, we found 1 warning sign for PagSeguro Digital that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.