Have insiders sold shares in Perdoceo Education recently?

we don't blame Perdoceo Educational Corporation (NASDAQ:PRDO) shareholders may be a little concerned about the fact that President Todd Nelson recently sold shares at an average price of US$17.40 for a profit of approximately US$835,000. Is it? This sale reduced his total holdings by 16%. This is by no means insignificant, but it's far from the worst situation I've ever seen.

Check out our latest analysis for Perdoceo Education.

Insider transactions in Perdoceo Education over the last 12 months

In fact, our records show that the recent sale by Todd Nelson was the largest sale of Perdoceo Education shares by an insider in the last twelve months. This means that insiders wanted to cash out some shares even when the share price was just below the current price of $17.92. If an insider sold below the current price, it suggests they thought the downside was fair. With that in mind, I'm curious what they think about the recent (higher) valuation. However, while insider selling can sometimes be discouraging, it can only be a weak signal. This one sale represented only 16% of Todd Nelson's stock.

Perdoceo Education insiders haven't bought any shares in the last year. The chart below depicts insider transactions (by companies and individuals) over the past year. Click on the chart to see all individual trades, including stock price, individual, and date.

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Does Perdoceo Education boast high insider ownership?

If you are a common shareholder, it may be worth checking how many shares are held by company insiders. Typically, the higher the insider ownership, the more likely it is that insiders are incentivized to build the company for the long term. It appears that Perdoceo Education insiders own 1.5% of the company's shares, worth about $17m. This is a strong but not significant level of insider ownership, but it's enough to indicate some alignment between management and smaller shareholders.

So what does this data suggest about Perdoceo educators?

Insiders recently sold shares in Perdoceo Education, but the company did not buy any shares. And last year, there were no purchases. However, Perdoceo Education is profitable and growing, so we're not too worried about this. This analysis makes us cautious about the company, as insider ownership is not very high. Therefore, make your purchase only after careful consideration. So while these insider transactions can help us form a theory about the stock, it's also worth knowing what risks this company faces. In terms of investment risk, We've identified 2 warning signs Perdoceo Education and understanding these should be part of your investment process.

If you want to check out another company with potentially better financials, don't miss this free List of interesting companies with high return on equity and low debt.

For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.