Chairman of the Board & CEO of Profound Medical Picks Up 2.6% More Stock

Potential Profound Medical Corp. (TSE:PRN) shareholders may wish to note that the Chairman of the Board & CEO, Arun Menawat, recently bought CA$144k worth of stock, paying CA$10.16 for each share. Although the purchase only increased their holding by 2.6%, it is still a solid purchase in our view.

View our latest analysis for Profound Medical

Profound Medical Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman of the Board & CEO Arun Menawat was not the only time they bought Profound Medical shares this year. Earlier in the year, they paid CA$10.62 per share in a CA$212k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$10.03). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 47.53k shares for CA$498k. But they sold 8.69k shares for CA$95k. In the last twelve months there was more buying than selling by Profound Medical insiders. You can see a visual depiction of insider transactions (by companies and 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!

Profound Medical 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 Profound Medical

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Profound Medical insiders own about CA$23m worth of shares. That equates to 7.9% 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.

So What Does This Data Suggest About Profound Medical Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Profound Medical shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 2 warning signs for Profound Medical you should be aware of.

Of course Profound Medical 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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