Insider Spends US$125k Buying More Shares In Profound Medical

Whilst it may not be a huge deal, we thought it was good to see that the Profound Medical Corp. (TSE:PRN) Chief Financial Officer, Rashed Dewan, recently bought CA$125k worth of stock, for CA$12.85 per share. That purchase might not be huge but it did increase their holding by 41%.

View our latest analysis for Profound Medical

Profound Medical Insider Transactions Over The Last Year

Notably, that recent purchase by Rashed Dewan is the biggest insider purchase of Profound Medical shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$13.06. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Profound Medical insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 18.21k shares worth CA$244k. But insiders sold 8.69k shares worth 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Profound Medical Boast High Insider Ownership?

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. Insiders own 9.0% of Profound Medical shares, worth about CA$29m. 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 Do The Profound Medical Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives 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). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. 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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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.