Independent Chair of Insulet Picks Up 66% More Stock

Investors who take an interest in Insulet Corporation (NASDAQ:PODD) should definitely note that the Independent Chair, Elizabeth Weatherman, recently paid US$144 per share to buy US$497k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 66%.

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The Last 12 Months Of Insider Transactions At Insulet

The CEO, President & Director Ashley McEvoy made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$239 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$146). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$2.3m for 10.74k shares. But they sold 3.02k shares for US$928k. In total, Insulet insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Insulet

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.3% of Insulet shares, worth about US$30m. 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 Does This Data Suggest About Insulet Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Insulet shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Insulet. Every company has risks, and we've spotted 1 warning sign for Insulet you should know about.

Of course Insulet 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 of direct interests only, but not derivative transactions or indirect interests.

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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.