We wouldn't blame PagSeguro Digital Ltd. (NYSE:PAGS) shareholders if they were a little worried about the fact that Alexandre Magnani, the Independent Director recently netted about US$2.3m selling shares at an average price of US$11.26. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At PagSeguro Digital

Notably, that recent sale by Alexandre Magnani is the biggest insider sale of PagSeguro Digital shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$10.76. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does PagSeguro Digital Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that PagSeguro Digital insiders own 3.5% of the company, worth about US$109m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At PagSeguro Digital Tell Us?

An insider hasn't bought PagSeguro Digital stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that PagSeguro Digital is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example - PagSeguro Digital has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.