Independent Director William Farrell Just Sold A Bunch Of Shares In Pro-Dex, Inc. (NASDAQ:PDEX)

Investors may wish to note that the Independent Director of Pro-Dex, Inc., William Farrell, recently netted US$66k from selling stock, receiving an average price of US$26.36. It wasn't a huge sale, but it did reduce their holding by 45%. This does not instill confidence.

See our latest analysis for Pro-Dex

The Last 12 Months Of Insider Transactions At Pro-Dex

In the last twelve months, the biggest single sale by an insider was when the CEO, President, Richard Van Kirk, sold US$282k worth of shares at a price of US$27.65 per share. That means that an insider was selling shares at around the current price of US$26.73. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Pro-Dex insiders didn't buy any company stock. 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!

I will like Pro-Dex better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Pro-Dex

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. Based on our data, Pro-Dex insiders have about 4.2% of the stock, worth approximately US$4.4m. I generally like to see higher levels of ownership.

So What Do The Pro-Dex Insider Transactions Indicate?

An insider sold Pro-Dex shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Pro-Dex is profitable and growing, we're not too worried by this. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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. Every company has risks, and we've spotted 3 warning signs for Pro-Dex (of which 1 is a bit unpleasant!) you should know about.

Of course Pro-Dex 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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