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Insiders of PROCEPT BioRobotics Corporation (NASDAQ:PRCT) received good value on their investment after their US$11m purchase jumped US$3.3m in value

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Insiders who bought PROCEPT BioRobotics Corporation (NASDAQ:PRCT) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$62m as a result of the stock's 4.5% gain over the same period. Put another way, the original US$11m acquisition is now worth US$14m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for PROCEPT BioRobotics

PROCEPT BioRobotics Insider Transactions Over The Last Year

The Independent Chairman of the Board Frederic Moll made the biggest insider purchase in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$25.00 each. Even though the purchase was made at a significantly lower price than the recent price (US$32.74), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 425.94k shares for US$11m. On the other hand they divested 678.00 shares, for US$24k. Overall, PROCEPT BioRobotics insiders were net buyers during 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!

insider-trading-volume
insider-trading-volume

PROCEPT BioRobotics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

PROCEPT BioRobotics Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at PROCEPT BioRobotics. EVP, Chief Legal Officer & Corporate Secretary Alaleh Nouri sold just US$24k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.3% of PROCEPT BioRobotics shares, worth about US$76m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The PROCEPT BioRobotics Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. However, our analysis of transactions over the last year is heartening. Insiders own shares in PROCEPT BioRobotics and we see no evidence to suggest they are worried about the future. 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. You'd be interested to know, that we found 2 warning signs for PROCEPT BioRobotics and we suggest you have a look.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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