Have Palladyne AI Insiders Been Selling Stock?

We'd be surprised if Palladyne AI Corp. (NASDAQ:PDYN) shareholders haven't noticed that the Co- Founder & CTO, Denis Garagic, recently sold US$110k worth of stock at US$7.42 per share. On the bright side, that sale was only 2.5% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Palladyne AI

In the last twelve months, the biggest single sale by an insider was when the insider, Marc Olivier, sold US$7.0m worth of shares at a price of US$12.42 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$7.87. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 356.81k shares for US$1.5m. On the other hand they divested 2.34m shares, for US$17m. In total, Palladyne AI insiders sold more than they bought over the last year. They sold for an average price of about US$7.26. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. 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!

View our latest analysis for Palladyne AI

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Insider Ownership Of Palladyne AI

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. Palladyne AI insiders own about US$82m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Palladyne AI Tell Us?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but Palladyne AI insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Palladyne AI has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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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.