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Insiders were net buyers of PROS Holdings, Inc.'s (NYSE:PRO ) 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, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for PROS Holdings
PROS Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Andres Reiner bought US$134k worth of shares at a price of US$17.85 per share. We do like to see buying, but this purchase was made at well below the current price of US$21.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Andres Reiner bought a total of 15.00k shares over the year at an average price of US$17.53. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insiders At PROS Holdings Have Sold Stock Recently
The last three months saw significant insider selling at PROS Holdings. Specifically, Independent Director Leland Jourdan ditched US$55k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does PROS Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 7.9% of PROS Holdings shares, worth about US$82m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The PROS Holdings Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for PROS Holdings (1 is a bit concerning!) that we believe deserve your full attention.