Insider Stock Buyers At PetMed Express Recouped Some Losses This Week

Insiders who bought US$451.7k worth of PetMed Express, Inc. (NASDAQ:PETS) stock in the last year have seen some of their losses recouped as the stock gained 11% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$225k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for PetMed Express

The Last 12 Months Of Insider Transactions At PetMed Express

Over the last year, we can see that the biggest insider purchase was by Independent Director Gian Fulgoni for US$301k worth of shares, at about US$7.34 per share. That means that an insider was happy to buy shares at above the current price of US$3.67. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 61.74k shares worth US$452k. On the other hand they divested 601.00 shares, for US$1.9k. Overall, PetMed Express insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

PetMed Express is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Have PetMed Express Insiders Traded Recently?

In the last three months, Vice President of People Jacqueline Smith sold US$1.9k worth of shares. That's not much at all. Ultimately the overall selling isn't enough to tell us much.

Insider Ownership Of PetMed Express

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. We usually like to see fairly high levels of insider ownership. Based on our data, PetMed Express insiders have about 1.7% of the stock, worth approximately US$1.3m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At PetMed Express Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more PetMed Express stock. 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. You'd be interested to know, that we found 1 warning sign for PetMed Express and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.