This Insider Has Just Sold Shares In Perficient, Inc. (NASDAQ:PRFT)

By
Simply Wall St
Published
November 10, 2020
NasdaqGS:PRFT

Some Perficient, Inc. (NASDAQ:PRFT) shareholders may be a little concerned to see that the Chief Operating Officer, Thomas Hogan, recently sold a substantial US$517k worth of stock at a price of US$42.51 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

View our latest analysis for Perficient

The Last 12 Months Of Insider Transactions At Perficient

In the last twelve months, the biggest single sale by an insider was when the Chairman, Jeffrey Davis, sold US$2.5m worth of shares at a price of US$42.84 per share. That means that an insider was selling shares at slightly below the current price (US$44.33). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of Jeffrey Davis's holding.

Over the last year, we can see that insiders have bought 1.90k shares worth US$80k. On the other hand they divested 107.83k shares, for US$4.6m. Over the last year we saw more insider selling of Perficient shares, than buying. 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!

insider-trading-volume
NasdaqGS:PRFT Insider Trading Volume November 10th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Insiders own 2.5% of Perficient shares, worth about US$36m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Perficient Insiders?

The insider sales have outweighed the insider buying, at Perficient, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Perficient is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Perficient. In terms of investment risks, we've identified 2 warning signs with Perficient and understanding these should be part of your investment process.

But note: Perficient 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, but not derivative transactions.

Promoted
If you’re looking to trade Perficient, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.