We'd be surprised if Palladyne AI Corp. (NASDAQ:PDYN) shareholders haven't noticed that the Co- Founder & CTO, Denis Garagic, recently sold US$106k worth of stock at US$6.14 per share. However, the silver lining is that the sale only reduced their total holding by 3.0%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Palladyne AI

Over the last year, we can see that the biggest insider purchase was by insider William Kerber for US$932k worth of shares, at about US$8.61 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.43). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 191.13k shares worth US$1.1m. On the other hand they divested 121.61k shares, for US$778k. In the last twelve months there was more buying than selling by Palladyne AI insiders. They paid about US$6.01 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Palladyne AI Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Palladyne AI insiders own about US$91m worth of shares. That equates to 23% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Palladyne AI Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Palladyne AI, in the last three months. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So we're not overly bothered by recent selling. 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.

Of course Palladyne AI may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.