Over the past year, many Pure Storage, Inc. (NYSE:PSTG) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Pure Storage
Pure Storage Insider Transactions Over The Last Year
The Chief Product Officer, Ajay Singh, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$36.42 each. So we know that an insider sold shares at around the present share price of US$36.25. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Pure Storage insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Pure Storage Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Pure Storage. In total, insiders sold US$2.9m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Pure Storage insiders own 5.9% of the company, currently worth about US$668m 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 Do The Pure Storage Insider Transactions Indicate?
Insiders sold Pure Storage shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Pure Storage.
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 of direct interests only, but not derivative transactions or indirect interests.
Valuation is complex, but we're helping make it simple.
Find out whether Pure Storage is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
View the Free AnalysisHave 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
September 17, 2023 at 07:24PM
https://ift.tt/k3nvL4i
Pure Storage Insiders Sell US$7.7m Of Stock, Possibly Signalling Caution - Simply Wall St
"pure" - Google News
https://ift.tt/bKhAPI5
https://ift.tt/UE0vwgt
Bagikan Berita Ini
0 Response to "Pure Storage Insiders Sell US$7.7m Of Stock, Possibly Signalling Caution - Simply Wall St"
Post a Comment