Don't Ignore The Insider Selling In Pro-Dex
Anyone interested in Pro-Dex, Inc. (NASDAQ:PDEX) should probably be aware that the CFO & Corporate Secretary, Alisha Charlton, recently divested US$141k worth of shares in the company, at an average price of US$61.30 each. However, the silver lining is that the sale only reduced their total holding by 9.5%, so we're hesitant to read anything much into it, on its own.
Pro-Dex Insider Transactions Over The Last Year
Notably, that recent sale by Alisha Charlton is the biggest insider sale of Pro-Dex shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$62.81. 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. This single sale was just 9.5% of Alisha Charlton's stake.
In the last year Pro-Dex insiders didn't buy any company stock. 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!
See our latest analysis for Pro-Dex
I will like Pro-Dex better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Pro-Dex Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.4% of Pro-Dex shares, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Pro-Dex Insider Transactions Indicate?
An insider sold Pro-Dex shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Pro-Dex makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. For example, Pro-Dex has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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.