Stock Analysis

The Non-Executive Director of Pureprofile Ltd (ASX:PPL), Timothy Hannon, Just Sold 74% Of Their Holding

  •  Updated
ASX:PPL
Source: Shutterstock

Anyone interested in Pureprofile Ltd (ASX:PPL) should probably be aware that the Non-Executive Director, Timothy Hannon, recently divested AU$400k worth of shares in the company, at an average price of AU$0.04 each. Equally important, that sale actually reduced their holding by a full 74% which hardly makes us feel bullish about the stock.

Before we look at these insider transactions though, you might like to know that our analysis indicates that PPL is potentially undervalued!

Pureprofile Insider Transactions Over The Last Year

Notably, that recent sale by Timothy Hannon is the biggest insider sale of Pureprofile shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.036. So it may not tell us anything about how insiders feel about the current share price.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:PPL Insider Trading Volume September 7th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Pureprofile Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Pureprofile insiders own about AU$5.9m worth of shares (which is 15% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Pureprofile Tell Us?

An insider hasn't bought Pureprofile stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pureprofile. For example - Pureprofile has 3 warning signs we think you should be aware of.

Of course Pureprofile 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, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether Pureprofile 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.

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About ASX:PPL

Pureprofile

Pureprofile Ltd, a data and insights organization, provides online research and digital advertising services for agencies, marketers, researchers, and publishers in Australia, Europe, and the United States.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation4
Future Growth5
Past Performance0
Financial Health5
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Excellent balance sheet with high growth potential.