Some Pro Medicus Limited (ASX:PME) shareholders may be a little concerned to see that the Co-Founder, Anthony Hall, recently sold a substantial AU$46m worth of stock at a price of AU$45.97 per share. However, that sale only accounted for 3.6% of their holding, so arguably it doesn't say much about their conviction.
View our latest analysis for Pro Medicus
The Last 12 Months Of Insider Transactions At Pro Medicus
The Co-Founder Sam Hupert made the biggest insider purchase in the last 12 months. That single transaction was for AU$46m worth of shares at a price of AU$45.97 each. That implies that an insider found the current price of AU$47.00 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Pro Medicus share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 1.08m shares for AU$47m. On the other hand they divested 1.00m shares, for AU$46m. Overall, Pro Medicus insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pro Medicus is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Pro Medicus insiders own about AU$2.8b worth of shares (which is 58% of the company). 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 Does This Data Suggest About Pro Medicus Insiders?
Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Pro Medicus insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pro Medicus. At Simply Wall St, we found 2 warning signs for Pro Medicus that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
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About ASX:PME
Pro Medicus
A healthcare informatics company, engages in the development and supply of healthcare imaging software, and radiology information (RIS) system software and services to hospitals, imaging centers, and health care groups in Australia, North America, and Europe.
Flawless balance sheet with solid track record.
