Insiders Buying Predictive Discovery Might Wish They Invested More, Stock Gains 26%

Predictive Discovery Limited (ASX:PDI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 26% resulting in a AU$302m addition to the company’s market value. In other words, the original AU$584.8k purchase is now worth AU$914.4k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Predictive Discovery Insider Transactions Over The Last Year

The Independent Non-Executive Director Alberto Lavandeira Adan made the biggest insider purchase in the last 12 months. That single transaction was for AU$218k worth of shares at a price of AU$0.35 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.56. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Predictive Discovery insiders bought shares during the last year, they didn't sell. 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!

Check out our latest analysis for Predictive Discovery

Predictive Discovery is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Predictive Discovery

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. We usually like to see fairly high levels of insider ownership. Predictive Discovery insiders own about AU$73m worth of shares. That equates to 5.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Predictive Discovery Insiders?

The fact that there have been no Predictive Discovery insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Predictive Discovery and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Predictive Discovery. At Simply Wall St, we've found that Predictive Discovery has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Predictive Discovery 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 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.