Insider Buying: The Planet Labs PBC (NYSE:PL) President of Product & Business Just Bought 62% More Shares

Those following along with Planet Labs PBC (NYSE:PL) will no doubt be intrigued by the recent purchase of shares by Kevin Weil, President of Product & Business of the company, who spent a stonking US$997k on stock at an average price of US$3.64. That purchase boosted their holding by 62%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Planet Labs PBC

The Last 12 Months Of Insider Transactions At Planet Labs PBC

Notably, that recent purchase by Kevin Weil is the biggest insider purchase of Planet Labs PBC shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$4.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

Planet Labs PBC is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Planet Labs PBC 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. It appears that Planet Labs PBC insiders own 8.2% of the company, worth about US$93m. 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 Do The Planet Labs PBC Insider Transactions Indicate?

It is good to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest Planet Labs PBC insiders are well aligned, and that they may think the share price is too low. While we like knowing 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. In terms of investment risks, we've identified 2 warning signs with Planet Labs PBC and understanding these should be part of your investment process.

But note: Planet Labs PBC 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, but not derivative transactions.

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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.