PayPal Holdings, Inc. (NASDAQ:PYPL) shareholders (or potential shareholders) will be happy to see that the President, Daniel Schulman, recently bought a whopping US$2.0m worth of stock, at a price of US$76.17. There’s no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 7.1%.
Check out our latest analysis for PayPal Holdings
The Last 12 Months Of Insider Transactions At PayPal Holdings
In the last twelve months, the biggest single sale by an insider was when the Executive Vice President of Global Sales, Peggy Alford, sold US$2.1m worth of shares at a price of US$97.82 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$74.66. So it may not shed much light on insider confidence at current levels. Peggy Alford was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$2.7m for 34.54k shares. But they sold 21.79k shares for US$2.1m. In the last twelve months there was more buying than selling by PayPal Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
PayPal Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of PayPal Holdings
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PayPal Holdings insiders own 0.1% of the company, currently worth about US$107m 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.
So What Does This Data Suggest About PayPal Holdings Insiders?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about PayPal Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 1 warning sign for PayPal Holdings you should be aware of.
But note: PayPal Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.
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