We often see insiders buying stocks in companies that are doing well in the long run. On the other hand, we would be happy not to mention that insider sales have been known prior to tough times for a business. So before you buy or sell Perficient, Inc. (NASDAQ: PRFT), you may want to know if insiders have bought or sold.
Does insider trading matter?
It is perfectly normal to see company insiders, such as Board members, trading in company shares from time to time. However, most countries require the company to pass on such transactions to the market.
We do not think that shareholders should just follow insider transactions. But it makes perfect sense to keep an eye on what insiders are doing. For example, a Columbia University examination found that ‘insiders are more likely to engage in open market purchases of their own company’s shares when the company is revealing new agreements with customers and suppliers’.
Perficient Insider transactions over the past year
The chairman, Jeffrey Davis, made the biggest insider sale in the last 12 months. The only transaction was USD 2.5 million. Shares at a price of US $ 42.84 each. This means that even when the stock price was below the current price of $ 61.56, an insider would redeem some shares. When an insider sells below the current price, it suggests that they considered the lower price to be fair. It makes us wonder what they think of the (higher) recent valuation. However, insider sales are sometimes discouraging, but that is only a weak signal. This single sale accounted for only 12% of Jeffrey Davis’ share.
Over the past twelve months, insiders bought 1,90,000 shares for $ 80,000. On the other hand, they sold 140.83k shares for DKK 6.2 million. US $. Overall, insiders sold more shares of Perficient than they bought last year. The chart below shows insider transactions (of companies and individuals) over the past year. By clicking on the graph below you can see the exact details of each insider transaction!
For those who like to find winning investments this for free list of growing companies with recent insider purchases, could just be the ticket.
Insiders at Perficient have recently sold stock
Over the past three months, we have seen significant insider sales at Perficient. Specifically, insiders dropped $ 1.9 million. In stocks at the time and we did not record any purchases at all. In light of this, it is difficult to argue that all insiders think the shares are a good buy.
Insider ownership of Perficient
I like to look at how many shares insiders own in a company, to help inform my perception of how customary they are with insiders. The higher the insider ownership, the more likely it is that insiders will be encouraged to build the business in the long run. It appears that Perficient insiders own 2.3% of the company worth about US $ 46 million. This level of insider ownership is good, but just short of being particularly stand out. It certainly suggests a reasonable degree of adaptation.
So what do these data suggest about skilled insiders?
Insiders have not bought Perficient shares in the last three months, but something was sold. Despite some insider buying, the long-term image does not make us feel much more positive. But it’s good to see Perficient grow earnings. Insiders own shares, but we are still quite cautious considering the sale history. We exercise some caution before we buy! So these insider transactions can help us build a dissertation on the stock, but it is also worth knowing the risks that this company faces. To help with this we have discovered 4 warning signs that you need to run the eye to get a better picture of Perficient.
Of course, You can find a great investment by looking elsewhere. So look at this for free list of interesting companies.
For the purposes of this Article, insiders are the persons who report their transactions to the relevant regulatory body. We currently handle open market transactions and private transactions, but not derivative transactions.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not include the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in the mentioned stocks.
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