We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Pluristem Therapeutics Inc. (NASDAQ:PSTI).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Pluristem Therapeutics
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Pluristem Therapeutics Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Independent Director Mark Germain sold US$68k worth of shares at a price of US$1.48 per share. While the sale doesn't make us feel confident, we do note it was conducted at a price well above the current share price, which is US$1.12. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Mark Germain.
Mark Germain ditched 69.69k shares over the year. The average price per share was US$1.49. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this freelist of growing companies that insiders are buying.
Does Pluristem Therapeutics Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Pluristem Therapeutics insiders own 7.9% of the company, worth about US$9.5m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Pluristem Therapeutics Tell Us?
It doesn't really mean much that no insider has traded Pluristem Therapeutics shares in the last quarter. The insider transactions at Pluristem Therapeutics are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Therefore, you should should definitely take a look at this FREEreport showing analyst forecasts for Pluristem Therapeutics.
Of course Pluristem Therapeutics may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.