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Potential Profound Medical Corp. (TSE:PRN) shareholders may wish to note that the Chairman of the Board & CEO, Arun Menawat, recently bought CA$144k worth of stock, paying CA$10.16 for each share. Although the purchase only increased their holding by 2.6%, it is still a solid purchase in our view.
View our latest analysis for Profound Medical
The Last 12 Months Of Insider Transactions At Profound Medical
In fact, the recent purchase by Chairman of the Board & CEO Arun Menawat was not their only acquisition of Profound Medical shares this year. They previously made an even bigger purchase of CA$212k worth of shares at a price of CA$10.62 per share. That means that even when the share price was higher than CA$10.03 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 47.53k shares worth CA$498k. On the other hand they divested 8.69k shares, for CA$95k. Overall, Profound Medical 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Profound Medical insiders own 7.9% of the company, worth about CA$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Profound Medical Tell Us?
It's certainly positive to see the recent insider purchase. 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. Insiders likely see value in Profound Medical shares, given these transactions (along with notable insider ownership of 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. You'd be interested to know, that we found 2 warning signs for Profound Medical and we suggest you have a look.