Parkway Corporate Limited (ASX:PWN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a AU$5.5m addition to the company’s market value. As a result, their original purchase of AU$1.18m worth of stock is now worth AU$1.67m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Parkway

The Last 12 Months Of Insider Transactions At Parkway

Over the last year, we can see that the biggest insider purchase was by insider Jack Yetiv for AU$1m worth of shares, at about AU$0.009 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.013. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Parkway insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

We saw some Parkway insider buying shares in the last three months. Group MD Bahay Ozcakmak purchased AU$17k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Parkway insiders own 31% of the company, worth about AU$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Parkway Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Parkway and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parkway. Case in point: We've spotted 3 warning signs for Parkway you should be aware of.

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.

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.