Even if it's not a huge purchase, we think it was good to see that Rashed Dewan, the Chief Financial Officer of Profound Medical Corp. (TSE:PRN) recently shelled out CA$125k to buy stock, at CA$12.85 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 41%.

View our latest analysis for Profound Medical

The Last 12 Months Of Insider Transactions At Profound Medical

In fact, the recent purchase by Rashed Dewan was the biggest purchase of Profound Medical shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of CA$12.60. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 18.21k shares worth CA$244k. But insiders sold 8.69k shares worth CA$95k. Overall, Profound Medical insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Profound Medical is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Profound Medical Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.0% of Profound Medical shares, worth about CA$28m. 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 Profound Medical Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Profound Medical shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Profound Medical that deserve your attention before buying any shares.