We'd be surprised if PROCEPT BioRobotics Corporation (NASDAQ:PRCT) shareholders haven't noticed that the President, Reza Zadno, recently sold US$428k worth of stock at US$46.67 per share. On the bright side, that sale was only 7.5% of their holding, so we doubt it's very meaningful, on its own.
PROCEPT BioRobotics Insider Transactions Over The Last Year
The Independent Chairman of the Board, Frederic Moll, made the biggest insider sale in the last 12 months. That single transaction was for US$3.1m worth of shares at a price of US$39.25 each. That means that even when the share price was below the current price of US$49.28, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 8.9% of Frederic Moll's stake.
Insiders in PROCEPT BioRobotics didn't buy any shares in the last year. 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!
I will like PROCEPT BioRobotics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does PROCEPT BioRobotics Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that PROCEPT BioRobotics insiders own 2.6% of the company, worth about US$66m. 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 Does This Data Suggest About PROCEPT BioRobotics Insiders?
Insiders sold PROCEPT BioRobotics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with PROCEPT BioRobotics and understanding these should be part of your investment process.
Of course PROCEPT BioRobotics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
