Some PACS Group, Inc. (NYSE:PACS) shareholders may be a little concerned to see that the Chief Accounting Officer, Michelle Lewis, recently sold a substantial US$600k worth of stock at a price of US$40.01 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At PACS Group

Over the last year, we can see that the biggest insider sale was by the Chief Legal Officer & Secretary, John Mitchell, for US$4.8m worth of shares, at about US$29.89 per share. That means that even when the share price was below the current price of US$44.32, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 67% of John Mitchell's holding.

All up, insiders sold more shares in PACS Group than they bought, over the last year. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of PACS Group

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's great to see that PACS Group insiders own 70% of the company, worth about US$4.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At PACS Group Tell Us?

An insider sold PACS Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of PACS Group.

But note: PACS Group 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 of direct interests only, but not derivative transactions or indirect interests.

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.