Have Insiders Sold Pure Storage Shares Recently?
Anyone interested in Pure Storage, Inc. (NYSE:PSTG) should probably be aware that the Chief Product Officer, Ajay Singh, recently divested US$482k worth of shares in the company, at an average price of US$67.14 each. However, the silver lining is that the sale only reduced their total holding by 3.8%, so we're hesitant to read anything much into it, on its own.
Pure Storage Insider Transactions Over The Last Year
Notably, that recent sale by Chief Product Officer Ajay Singh was not the only time they sold Pure Storage shares this year. Earlier in the year, they fetched US$82.38 per share in a -US$1.5m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$68.43. So it is hard to draw any strong conclusion from it.
Pure Storage insiders didn't buy any shares over 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!
View our latest analysis for Pure Storage
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Pure Storage insiders own about US$1.1b worth of shares (which is 4.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Pure Storage Insiders?
Insiders sold Pure Storage shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Pure Storage you should be aware of.
But note: Pure Storage 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.