We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Pacira BioSciences, Inc. (NASDAQ:PCRX).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Pacira BioSciences Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the , Kristen Dunker, for US$225k worth of shares, at about US$47.04 per share. 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$36.81. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$524k for 11200 shares. On the other hand they divested 12500 shares, for US$499k. In the last twelve months there was more buying than selling by Pacira BioSciences insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Pacira BioSciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Pacira BioSciences Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Pacira BioSciences. Specifically, Independent Director Mark Kronenfeld bought US$66k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
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. From our data, it seems that Pacira BioSciences insiders own 0.4% of the company, worth about US$6.4m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Pacira BioSciences Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Pacira BioSciences insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Pacira BioSciences, you should check out this free report on analyst forecasts for the company.
Of course Pacira BioSciences may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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