We wouldn't blame Pure Storage, Inc. (NYSE:PSTG) shareholders if they were a little worried about the fact that Paul Mountford, the Chief Operating Officer recently netted about US$1.6m selling shares at an average price of US$23.52. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.
View our latest analysis for Pure Storage
Pure Storage Insider Transactions Over The Last Year
Notably, that recent sale by Paul Mountford is the biggest insider sale of Pure Storage shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$23.97, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 15% of Paul Mountford's holding.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Pure Storage better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Pure Storage
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Pure Storage insiders own 6.9% of the company, worth about US$448m. 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 Do The Pure Storage Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 4 warning signs with Pure Storage and understanding these should be part of your investment process.
But note: Pure Storage may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Promoted
If you decide to trade Pure Storage, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.
This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
"pure" - Google News
December 25, 2020 at 07:04PM
https://ift.tt/37LXCHa
Have Insiders Sold Pure Storage, Inc. (NYSE:PSTG) Shares Recently? - Simply Wall St
"pure" - Google News
https://ift.tt/3d6cIXO
https://ift.tt/35ryK4M
Bagikan Berita Ini
0 Response to "Have Insiders Sold Pure Storage, Inc. (NYSE:PSTG) Shares Recently? - Simply Wall St"
Post a Comment