Independent Director of Profound Medical Picks Up 31% More Stock
Potential Profound Medical Corp. (TSE:PRN) shareholders may wish to note that the Independent Director, Arthur L. Rosenthal, recently bought CA$139k worth of stock, paying CA$10.01 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 31%.
The Last 12 Months Of Insider Transactions At Profound Medical
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board & CEO Arun Menawat for CA$144k worth of shares, at about CA$10.16 per share. That means that an insider was happy to buy shares at around the current price of CA$10.25. 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. 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. The good news for Profound Medical share holders is that insiders were buying at near the current price.
In the last twelve months Profound Medical insiders were buying shares, but not selling. They paid about CA$7.97 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Profound Medical
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Profound Medical Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Profound Medical insiders own about CA$15m worth of shares. That equates to 4.7% of the company. 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 Profound Medical Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Profound Medical we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Profound Medical.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.