Sam Hupert Buys Handful Of Shares In Pro Medicus

Pro Medicus Limited (ASX:PME) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Sam Hupert, recently bought a whopping AU$15m worth of stock, at a price of AU$299. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.2%.

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The Last 12 Months Of Insider Transactions At Pro Medicus

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Anthony Hall, for AU$257m worth of shares, at about AU$257 per share. That means that an insider was selling shares at slightly below the current price (AU$296). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.0% of Anthony Hall's holding.

In the last twelve months insiders purchased 50.18k shares for AU$15m. But they sold 2.00m shares for AU$514m. Over the last year we saw more insider selling of Pro Medicus shares, than buying. 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!

Check out our latest analysis for Pro Medicus

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Does Pro Medicus Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Pro Medicus insiders own 49% of the company, worth about AU$15b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Pro Medicus Insiders?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Pro Medicus insiders are fairly aligned, and optimistic. 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. At Simply Wall St, we found 1 warning sign for Pro Medicus that deserve your attention before buying any shares.

But note: Pro Medicus 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.

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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.