Investors may wish to note that the Independent Director of Puma Biotechnology, Inc., Michael Miller, recently netted US$71k from selling stock, receiving an average price of US$2.83. That might not be a huge sum but it was 60% of their personal holding, so we find it a little discouraging.
Check out our latest analysis for Puma Biotechnology
The Last 12 Months Of Insider Transactions At Puma Biotechnology
The Founder, Alan Auerbach, made the biggest insider sale in the last 12 months. That single transaction was for US$114k worth of shares at a price of US$4.18 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$3.50. So it is hard to draw any strong conclusion from it.
In the last year Puma Biotechnology insiders didn’t buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Puma Biotechnology Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Puma Biotechnology insiders own 15% of the company, worth about US$25m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Puma Biotechnology Tell Us?
An insider sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. 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. At Simply Wall St, we’ve found that Puma Biotechnology has 5 warning signs (1 doesn’t sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Puma Biotechnology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
What are the risks and opportunities for Puma Biotechnology?
Trading at 81.6% below our estimate of its fair value
Earnings are forecast to decline by an average of 35.3% per year for the next 3 years
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Profit margins (1.6%) are lower than last year (4.5%)
Large one-off items impacting financial results
View all Risks and Rewards
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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.