Alberto Lavandeira Adan Bought 71% More Shares In Predictive Discovery

Yahoo

6 days ago

Potential Predictive Discovery Limited (ASX:PDI) shareholders may wish to note that the Independent Non-Executive Director, Alberto Lavandeira Adan, recently bought AU$190k worth of stock, paying AU$0.38 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 71%.
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Notably, that recent purchase by Independent Non-Executive Director Alberto Lavandeira Adan was not the only time they bought Predictive Discovery shares this year. They previously made an even bigger purchase of AU$218k worth of shares at a price of AU$0.35 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.39. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Predictive Discovery insiders decided to buy shares at close to current prices.
While Predictive Discovery insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Predictive Discovery
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.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 4.8% of Predictive Discovery shares, worth about AU$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Predictive Discovery insiders are well aligned, and that they may think the share price is too low. 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. Every company has risks, and we've spotted 1 warning sign for Predictive Discovery you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
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