PetMed Express Independent Chairman of the Board Acquires 141% More Stock

Potential PetMed Express, Inc. (NASDAQ:PETS) shareholders may wish to note that the Independent Chairman of the Board, Leslie C. Campbell, recently bought US$325k worth of stock, paying US$5.41 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 141%.

See our latest analysis for PetMed Express

The Last 12 Months Of Insider Transactions At PetMed Express

In fact, the recent purchase by Leslie C. Campbell was the biggest purchase of PetMed Express shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$5.75. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the PetMed Express insider decided to buy shares at close to current prices. Leslie C. Campbell was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

PetMed Express is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 4.3% of PetMed Express shares, worth about US$5.1m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Do The PetMed Express Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on 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. For example, PetMed Express has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course PetMed Express 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.