As Insulet Corporation's (NASDAQ:PODD)) market cap dropped by US$2.7b, insiders who sold US$5.5m worth of stock were able to offset their losses

By
Simply Wall St
Published
March 14, 2022
NasdaqGS:PODD
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling US$5.5m worth of Insulet Corporation (NASDAQ:PODD) stock at an average sell price of US$277 during the past year. The company's market worth decreased by US$2.7b over the past week after the stock price dropped 15%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Insulet

The Last 12 Months Of Insider Transactions At Insulet

In the last twelve months, the biggest single sale by an insider was when the insider, Sally Crawford, sold US$2.7m worth of shares at a price of US$269 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$223). So it may not shed much light on insider confidence at current levels.

Insulet insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:PODD Insider Trading Volume March 14th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Insulet

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insulet insiders own about US$69m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Insulet Tell Us?

It doesn't really mean much that no insider has traded Insulet shares in the last quarter. Our analysis of Insulet insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. For example, Insulet has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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