The fact that multiple Pure Storage, Inc. (NYSE:PSTG) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Pure Storage
The Last 12 Months Of Insider Transactions At Pure Storage
The Independent Director, Gregory Tomb, made the biggest insider sale in the last 12 months. That single transaction was for US$922k worth of shares at a price of US$31.45 each. So we know that an insider sold shares at around the present share price of US$30.37. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Pure Storage insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Pure Storage insiders own 6.1% of the company, currently worth about US$545m 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.
So What Does This Data Suggest About Pure Storage Insiders?
It doesn't really mean much that no insider has traded Pure Storage shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Pure Storage insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pure Storage. You'd be interested to know, that we found 1 warning sign for Pure Storage and we suggest you have a look.
Of course Pure Storage 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
"pure" - Google News
August 14, 2022 at 09:30PM
https://ift.tt/WhAu4xY
Pure Storage, Inc. (NYSE:PSTG) insiders sold US$2.6m worth of stock, possibly signalling a downtrend - Simply Wall St
"pure" - Google News
https://ift.tt/EhnXIlO
https://ift.tt/km8NgCv
Bagikan Berita Ini
0 Response to "Pure Storage, Inc. (NYSE:PSTG) insiders sold US$2.6m worth of stock, possibly signalling a downtrend - Simply Wall St"
Post a Comment