Have PACS Group Insiders Been Selling Stock?
Some PACS Group, Inc. (NYSE:PACS) shareholders may be a little concerned to see that the Co-Founder, Jason Murray, recently sold a substantial US$887k worth of stock at a price of US$45.19 per share. However, that sale only accounted for 0.04% of their holding, so arguably it doesn't say much about their conviction.
PACS Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Legal Officer & Secretary, John Mitchell, sold US$4.8m worth of shares at a price of US$29.89 per share. That means that even when the share price was below the current price of US$42.09, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 67% of John Mitchell's holding.
In total, PACS Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for PACS Group
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Does PACS Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. PACS Group insiders own 69% of the company, currently worth about US$4.9b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At PACS Group Tell Us?
Insiders sold PACS Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since PACS Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that PACS Group has 1 warning sign and it would be unwise to ignore this.
Of course PACS Group 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.