It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Pro-Dex, Inc.’s (NASDAQ:PDEX) case, it’s fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Pro-Dex
Over the last year, we can see that the biggest insider purchase was by Independent Director Katrina Philp for US$85k worth of shares, at about US$24.41 per share. That means that an insider was happy to buy shares at above the current price of US$22.22. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$126k for 5.47k shares. On the other hand they divested 3.48k shares, for US$99k. In the last twelve months there was more buying than selling by Pro-Dex insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Pro-Dex Have Bought Stock Recently
Over the last quarter, Pro-Dex insiders have spent a meaningful amount on shares. In total, insiders bought US$126k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Does Pro-Dex Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Pro-Dex insiders own 5.2% of the company, worth about US$4.3m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Pro-Dex Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Pro-Dex insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Pro-Dex. To that end, you should learn about the 3 warning signs we’ve spotted with Pro-Dex (including 1 which makes us a bit uncomfortable).
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, but not derivative transactions.
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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.