Stock Analysis

Trade Alert: The Independent Director Of Pro-Dex, Inc. (NASDAQ:PDEX), Katrina Philp, Has Just Spent US$58k Buying 36% More Shares

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Whilst it may not be a huge deal, we thought it was good to see that the Pro-Dex, Inc. (NASDAQ:PDEX) Independent Director, Katrina Philp, recently bought US$58k worth of stock, for US$14.98 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.

See our latest analysis for Pro-Dex

The Last 12 Months Of Insider Transactions At Pro-Dex

In fact, the recent purchase by Independent Director Katrina Philp was not their only acquisition of Pro-Dex shares this year. They previously made an even bigger purchase of US$98k worth of shares at a price of US$24.41 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$15.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 9.90k shares worth US$197k. But insiders sold 978.00 shares worth US$33k. In the last twelve months there was more buying than selling by Pro-Dex insiders. The average buy price was around US$19.93. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqCM:PDEX Insider Trading Volume May 14th 2022

Pro-Dex is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Pro-Dex 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Pro-Dex insiders own about US$3.0m worth of shares (which is 5.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Pro-Dex Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Pro-Dex stock. 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. Case in point: We've spotted 4 warning signs for Pro-Dex you should be aware of.

But note: Pro-Dex 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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