Parkway Reaches AU$30m Market Cap Benefiting Insider Stock Buying

Parkway Corporate Limited (ASX:PWN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10.0% resulting in a AU$2.8m addition to the company’s market value. In other words, the original AU$168.0k purchase is now worth AU$191.3k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Parkway

Notably, that recent purchase by Philip Feitelson is the biggest insider purchase of Parkway shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.011. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Parkway insiders decided to buy shares at close to current prices.

In the last twelve months Parkway insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Parkway

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Parkway Have Bought Stock Recently

Over the last quarter, Parkway insiders have spent a meaningful amount on shares. In total, insiders bought AU$168k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 31% of Parkway shares, worth about AU$9.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Parkway Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Parkway shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parkway. While conducting our analysis, we found that Parkway has 1 warning sign and it would be unwise to ignore it.

Of course Parkway may not be the best stock to buy. So you may wish to see this free collection of high quality 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.