Viewing insider transactions for Paragon 28, Inc.'s (NYSE:FNA ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Paragon 28

The Last 12 Months Of Insider Transactions At Paragon 28

Over the last year, we can see that the biggest insider purchase was by Co-Founder Albert DaCosta for US$260k worth of shares, at about US$8.51 per share. So it's clear an insider wanted to buy, at around the current price, which is US$8.65. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Paragon 28 share holders is that an insider was buying at near the current price. Albert DaCosta was the only individual insider to buy during the last year.

Albert DaCosta purchased 58.50k shares over the year. The average price per share was US$8.80. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Paragon 28

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Paragon 28 insiders own 23% of the company, currently worth about US$156m 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 Paragon 28 Insiders?

The fact that there have been no Paragon 28 insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Paragon 28 insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Paragon 28 is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...