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Potential Profound Medical Corp. (TSE:PRN) shareholders may wish to note that the Independent Lead Director, Brian Ellacott, recently bought CA$459k worth of stock, paying CA$9.18 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 278%.
View our latest analysis for Profound Medical
Profound Medical Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Arun Menawat for CA$637k worth of shares, at about CA$10.93 per share. That means that an insider was happy to buy shares at above the current price of CA$9.01. 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. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months Profound Medical insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Profound Medical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.3% of Profound Medical shares, worth about CA$12m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Profound Medical Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Profound Medical insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Profound Medical and understanding them should be part of your investment process.