ProKidney Independent Director Brian Jude Pereira Sells 100% Of Holding

We wouldn't blame ProKidney Corp. (NASDAQ:PROK) shareholders if they were a little worried about the fact that Brian Jude Pereira, the Independent Director recently netted about US$1.9m selling shares at an average price of US$2.49. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At ProKidney

Notably, that recent sale by Brian Jude Pereira is the biggest insider sale of ProKidney shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.41. So it may not shed much light on insider confidence at current levels.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for ProKidney

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ProKidney insiders own about US$61m worth of shares. That equates to 8.4% 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.

So What Does This Data Suggest About ProKidney Insiders?

An insider hasn't bought ProKidney stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with ProKidney (including 2 which are concerning).

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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.