Unlocking Insights: Perdoceo Education Insiders Cash In $2.6M in Stock – Is Caution on the Horizon?

In the past year, insiders at Perdoceo Education Corporation (NASDAQ:PRDO) sold off a noticeable amount of shares. This has raised some eyebrows among investors. When it comes to insider transactions, it’s usually more telling when insiders are buying shares rather than selling them. Selling can mean many things, but a lot of selling from insiders might prompt shareholders to do some digging.

We don’t think investors should blindly follow insider moves, but ignoring them entirely could be unwise.

Check out our latest analysis of Perdoceo Education

Insider Sales Over the Past Year

Last year, the biggest sale came from President Todd Nelson, who sold shares worth $852,000 at $17.77 each. This is below the current price of $27.33, which might signal some concern. If insiders are selling at lower prices, it could mean they believe that price is fair. However, keep in mind that there are many reasons someone might sell shares. In this case, Todd sold only 19% of his total holdings.

Interestingly, over the last year, no insiders bought shares in Perdoceo Education. You can view the complete list of insider transactions, along with details about prices and dates, if you check out the accompanying chart.

Recent Sales Raise Caution

In the last three months, insider sales at Perdoceo Education have increased. Independent Director Patrick Gross sold shares worth $91,000, while there were no recorded purchases. This trend makes it wise for investors to approach the stock with caution.

Insider Ownership Metrics

Checking how much of a company insiders own is also important. At Perdoceo Education, insiders hold about 6.4% of the company, valued at around $114 million. Generally, this level of ownership is a positive sign, as it suggests that management has a vested interest in the company’s success.

Final Thoughts on Perdoceo Education Insiders

Though insiders sold stock recently and haven’t bought any, the substantial insider ownership is a good sign. Still, the selling raises some flags. Investors should carefully consider this information while looking into Perdoceo Education.

For context, “insiders” are individuals required to report their transactions to regulators. This includes open market transactions and private sales, but not derivative transactions or indirect interests.