Recent 12% price drop PureTech Health plc’s (LON:PRTC) shares may have disappointed insiders who bought US$124,000 worth of shares at an average price of US$2.74 over the past 12 months. This is not good because insiders invest based on the expectation that the money will appreciate over time. However, as a result of recent losses, the initial investment is now only US$99,000.
We believe that shareholders should not simply follow insider trading, but logically they should pay attention to whether insiders are buying or selling shares.
See the latest analysis on PureTech Health.
Insider trading at PureTech Health in the last 12 months
We can see that last year’s largest insider purchase was a £73,000 worth of shares by President Bharatt Chowrira at around £2.90 per share. So it’s clear that insiders wanted to buy, even at a price higher than the current share price (£2.21). It’s very likely that they regret the purchase, but they’re more likely to be bullish on the company. It’s encouraging to see insiders paying more than the current stock price. Bharat Chowrira was the only individual insider to purchase during the last year.
Bharatt Chowrira bought a total of 45,000 shares at an annual average of GBP 2.74. The chart below shows insider trading (by company and individual) over the past year. Clicking on the chart will show you all individual deals, such as stock, individual, and date.
There are many other companies in which insiders buy shares.you probably do No i want to miss this freedom A list of growth companies that insiders are buying.
Insider Ownership of PureTech Health
Looking at a company’s total insider shareholdings can help give an idea of whether they are well aligned with public shareholders. Usually, the higher the insider’s ownership, the more likely the insider has an incentive to build the company over the long term. The insider owns his 7.7% stake in PureTech Health, worth around £48m. While this is a strong level of insider ownership, it is not an outstanding level, but it is sufficient to indicate some alignment between management and minority shareholders.
So what does the PureTech Health Insider transaction indicate?
There has been no insider trading in the last three months. This doesn’t make much sense. But insiders have shown more appetite for stocks this past year. The insider has a stake in his PureTech Health and their deal is not a concern for us. While we’d love to know what’s going on with insider ownership and trading, we should also consider the risks facing the stock before making an investment decision.Case in point: we found One Warning Sign for PureTech Health You should know.
If you want to check out another company – one with potentially great financials – don’t miss freedom An interesting list of companies with high return on equity and low debt.
For the purposes of this article, an insider is an individual who reports a transaction to the relevant regulatory body. Currently, we consider open market transactions and private disposals, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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