Insiders who bought Pagaya Technologies Ltd. (NASDAQ:PGY) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$80m as a result of the stock's 11% gain over the same period. As a result, their original purchase of US$2.01m worth of stock is now worth US$2.23m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Pagaya Technologies

Pagaya Technologies Insider Transactions Over The Last Year

In fact, the recent purchase by Yahav Yulzari was the biggest purchase of Pagaya Technologies shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$11.46. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Pagaya Technologies insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Pagaya Technologies 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.

Insiders At Pagaya Technologies Have Bought Stock Recently

Over the last quarter, Pagaya Technologies insiders have spent a meaningful amount on shares. Overall, six insiders shelled out US$2.0m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Does Pagaya Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Pagaya Technologies insiders own 20% of the company, currently worth about US$153m based on the recent share price. 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 Pagaya Technologies Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pagaya Technologies. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Pagaya Technologies has 2 warning signs we think you should be aware of.

Of course Pagaya Technologies 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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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.