Clustered Insider Buying at Paragon Care Signals Executive Confidence

Insider Buying Activity

October 2025 brought a surge of insider buying from Paragon Care’s leadership team. The transactions include:

David Keith Collins (MD/CEO) - purchased 640,167 shares on October 21 at A$0.293 and another 105,114 shares on October 20 at A$0.276 per share. His total outlay for the month was roughly A$215,580.

Peter Andre Lacaze (Executive Chair) - mirrored those trades, buying 640,167 shares on October 21 at A$0.293 and 105,114 shares on October 20 at A$0.276, also totaling around A$215,580.

Peter John Egglestone (Non-Executive Director) - acquired 200,000 shares on October 1 at A$0.293, representing a purchase value of approximately A$58,600.

Altogether, insiders bought over 1.6 million shares in a single month, marking one of the most concentrated waves of buying in recent years for Paragon Care.

Reading the Insider Signal

The near-identical timing and pricing of the CEO’s and Executive Chair’s trades suggest a high degree of coordination, or at least a shared conviction about the company’s outlook. When multiple top executives purchase stock simultaneously, it typically signals confidence in the company’s valuation or optimism about near-term catalysts.

In Paragon’s case, that conviction may tie to the ongoing integration of CH2 Holdings. Analysts have pointed to the merger as a potential game-changer, expanding Paragon’s logistics network and supplier reach while setting the stage for cost synergies and improved margins. Insiders may believe the market is undervaluing these post-merger benefits, and their buying reflects that view.

Who These Insiders Are

Both Peter Lacaze and David Collins are seasoned leaders with deep experience in healthcare and corporate strategy. Lacaze has guided Paragon through its transformation into a multi-division enterprise, while Collins has led operational alignment and efficiency drives since taking on the CEO role. Their collective purchases reinforce the narrative that leadership sees the current share price, hovering near A$0.29, as an attractive entry point. Director Peter Egglestone’s additional buy earlier in the month further strengthens the perception of internal consensus.

Financial Position and Market Context

Paragon Care’s financial structure presents both opportunity and risk. While its revenue scale is impressive, profitability remains slim, with gross margins under 9 percent. Debt levels are significant, totaling roughly A$292 million, compared with A$20 million in cash. Free cash flow has also been negative in recent quarters, underscoring the importance of achieving merger-related efficiencies.

Despite these challenges, market sentiment has been cautiously positive. Analysts have noted that Paragon’s shares trade at a discount to sector peers on an EV/EBITDA basis, implying potential upside if integration proceeds smoothly. According to The Australian, analysts view the CH2 acquisition favorably, highlighting its synergies, expanded product base, and enhanced supply chain as long-term value drivers.

The October cluster of insider buying by Paragon Care’s top leadership sends a clear message: management believes in the company’s trajectory and sees current market pricing as undervalued.