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Potential PDF Solutions, Inc. (NASDAQ:PDFS) shareholders may wish to note that the Independent Director, Michael Gustafson, recently bought US$146k worth of stock, paying US$19.45 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 34%.
Our free stock report includes 1 warning sign investors should be aware of before investing in PDF Solutions. Read for free now.
The Last 12 Months Of Insider Transactions At PDF Solutions
The Co-Founder John Kibarian made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$22.80 each. That means that even when the share price was higher than US$19.70 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 61.50k shares for US$1.4m. But insiders sold 18.78k shares worth US$597k. In the last twelve months there was more buying than selling by PDF Solutions insiders. 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!
Check out our latest analysis for PDF Solutions
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does PDF Solutions Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PDF Solutions insiders own 17% of the company, currently worth about US$134m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About PDF Solutions Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PDF Solutions. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - PDF Solutions has 1 warning sign we think you should be aware of.