PS International Group Ltd.'s (NASDAQ:PSIG) value has fallen 12% in the last week, but insiders who sold US$919k worth of stock over the last year have had less success. The average selling price of US$2.27 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for PS International Group
In the last twelve months, the biggest single sale by an insider was when the insider, Kin Yin Kwong, sold US$919k worth of shares at a price of US$2.59 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$0.53. So it may not tell us anything about how insiders feel about the current share price. Kin Yin Kwong was the only individual insider to sell shares in the last twelve months. Notably Kin Yin Kwong was also the biggest buyer, having purchased US$27k worth of shares.
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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that PS International Group insiders own 67% of the company, worth about US$9.0m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It doesn't really mean much that no insider has traded PS International Group shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of PS International Group insider transactions don't fill us with confidence. 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. Every company has risks, and we've spotted 4 warning signs for PS International Group (of which 2 are significant!) you should know about.
Of course PS International 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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