We wouldn’t blame Perficient, Inc. (NASDAQ:PRFT) shareholders if they were a little worried about the fact that Jeffrey Davis, the Chairman recently netted about US$2.5m selling shares at an average price of US$42.61. That’s a big dump, and it decreased their holding size by 12%, which is notable but not too bad.
Perficient Insider Transactions Over The Last Year
In fact, the recent sale by Jeffrey Davis was the biggest sale of Perficient shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$42.84. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
In the last twelve months insiders purchased 1.55k shares for US$50k. On the other hand they divested 208222 shares, for US$7.5m. All up, insiders sold more shares in Perficient than they bought, over the last year. They sold for an average price of about US$35.89. We don’t gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see a visual depiction of insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Perficient Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Perficient insiders own about US$45m worth of shares. That equates to 3.3% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Perficient Tell Us?
Insiders sold Perficient shares recently, but they didn’t buy any. Zooming out, the longer term picture doesn’t give us much comfort. But it is good to see that Perficient is growing earnings. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Perficient 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.
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