Trade Alert: The Chief Technology Officer Of Proto Labs, Inc. (NYSE:PRLB), Arthur Baker, Has Just Spent US$492k Buying 94% More Shares
Investors who take an interest in Proto Labs, Inc. (NYSE:PRLB) should definitely note that the Chief Technology Officer, Arthur Baker, recently paid US$49.21 per share to buy US$492k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 94%, potentially signalling some real optimism.
See our latest analysis for Proto Labs
Proto Labs Insider Transactions Over The Last Year
Notably, that recent purchase by Arthur Baker is the biggest insider purchase of Proto Labs shares that we've seen in the last year. That implies that an insider found the current price of US$50.90 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Proto Labs insiders decided to buy shares at close to current prices. Notably Arthur Baker was also the biggest seller.
Over the last year, we can see that insiders have bought 13.14k shares worth US$642k. On the other hand they divested 3.00k shares, for US$544k. Overall, Proto Labs insiders were net buyers during 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Proto Labs
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Proto Labs insiders own about US$8.7m worth of shares (which is 0.6% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Proto Labs Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Proto Labs stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Proto Labs. Every company has risks, and we've spotted 4 warning signs for Proto Labs you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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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.
