Yahoo Finance The Director of ProPetro Holding Corp. (NYSE:PUMP), Mark Berg, Just Bought A Few More Shares
Even if it's not a huge purchase, we think it was good to see that Mark Berg, the Director of ProPetro Holding Corp. (NYSE:PUMP) recently shelled out US$75k to buy stock, at US$6.11 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for ProPetro Holding
ProPetro Holding Insider Transactions Over The Last Year
In fact, the recent purchase by Mark Berg was the biggest purchase of ProPetro Holding shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$6.12. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the ProPetro Holding insider decided to buy shares at close to current prices. Mark Berg was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ProPetro Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does ProPetro Holding Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. ProPetro Holding insiders own about US$25m worth of shares. That equates to 4.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At ProPetro Holding Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of ProPetro Holding we think they are probably pretty confident of a bright 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. In terms of investment risks, we've identified 3 warning signs with ProPetro Holding and understanding them should be part of your investment process.
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.
This article by Simply Wall St is general in nature. 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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