Michael Gustafson Bought 34% More Shares In PDF Solutions

Investors who take an interest in PDF Solutions, Inc. (NASDAQ:PDFS) should definitely note that the Independent Director, Michael Gustafson, recently paid US$19.45 per share to buy US$146k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 34%.

Our free stock report includes 1 warning sign investors should be aware of before investing in PDF Solutions. Read for free now.

The Last 12 Months Of Insider Transactions At PDF Solutions

In the last twelve months, the biggest single purchase by an insider was when Co-Founder John Kibarian bought US$1.1m worth of shares at a price of US$22.80 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$19.70). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months insiders purchased 61.50k shares for US$1.4m. On the other hand they divested 18.78k shares, for US$597k. Overall, PDF Solutions insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for PDF Solutions

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of PDF Solutions

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. PDF Solutions insiders own 17% of the company, currently worth about US$134m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At PDF Solutions Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PDF Solutions. That's what I like to see! 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. While conducting our analysis, we found that PDF Solutions has 1 warning sign and it would be unwise to ignore this.

But note: PDF Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.