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Insiders were net buyers of Penguin Solutions, Inc.'s (NASDAQ:PENG ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Penguin Solutions Insider Transactions Over The Last Year
The President Mark Adams made the biggest insider purchase in the last 12 months. That single transaction was for US$188k worth of shares at a price of US$18.79 each. That means that an insider was happy to buy shares at around the current price of US$19.62. 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 Penguin Solutions share holders is that an insider was buying at near the current price. Mark Adams was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Penguin Solutions
Penguin Solutions is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Penguin Solutions Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.6% of Penguin Solutions shares, worth about US$26m. 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 Do The Penguin Solutions Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Penguin Solutions shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Penguin Solutions and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Penguin Solutions. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Penguin Solutions.