Executive VP Of Insulet Sold 26% Of Their Shares

We wouldn't blame Insulet Corporation (NASDAQ:PODD) shareholders if they were a little worried about the fact that Eric Benjamin, the Executive VP recently netted about US$1.2m selling shares at an average price of US$268. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

View our latest analysis for Insulet

Insulet Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Chairman, Timothy Scannell, for US$1.3m worth of shares, at about US$191 per share. That means that an insider was selling shares at slightly below the current price (US$257). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 17% of Timothy Scannell's stake.

Over the last year we saw more insider selling of Insulet shares, than buying. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Insulet

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of Insulet shares, worth about US$70m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Insulet Insiders?

Insiders haven't bought Insulet stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Insulet is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of 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 Insulet and understanding these should be part of your investment process.

But note: Insulet 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.