Insiders Of Palladyne AI Are Up 76% On Their US$517.3k Purchase

Palladyne AI Corp. (NASDAQ:PDYN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a US$5.4m addition to the company’s market value. In other words, the original US$517.3k purchase is now worth US$909.6k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Palladyne AI

The Last 12 Months Of Insider Transactions At Palladyne AI

Over the last year, we can see that the biggest insider purchase was by Independent Director Brian Finn for US$72k worth of shares, at about US$0.61 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.00. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Palladyne AI insiders were buying shares, but not selling. Their average price was about US$1.14. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Palladyne AI 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. 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$20m worth of shares. That equates to 38% 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.

What Might The Insider Transactions At Palladyne AI Tell Us?

The fact that there have been no Palladyne AI insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Palladyne AI insiders are doubting the company, and they do own shares. 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. To help with this, we've discovered 5 warning signs (3 shouldn't be ignored!) that you ought to be aware of before buying any shares in Palladyne AI.

But note: Palladyne AI may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.