Some Pure Storage, Inc. (NYSE:PSTG) shareholders may be a little concerned to see that the Chief Financial Officer, Kevan Krysler, recently sold a substantial US$912k worth of stock at a price of US$63.79 per share. However, that sale only accounted for 3.7% of their holding, so arguably it doesn't say much about their conviction.

Pure Storage Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Vice Chairman, Scott Dietzen, for US$7.9m worth of shares, at about US$53.49 per share. That means that an insider was selling shares at slightly below the current price (US$67.71). 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 15% of Scott Dietzen's stake.

Pure Storage insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Pure Storage

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. Pure Storage insiders own 5.5% of the company, currently worth about US$1.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Pure Storage Tell Us?

Insiders sold Pure Storage shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Pure Storage is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of 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. Case in point: We've spotted 3 warning signs for Pure Storage you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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