Mona Chu Executes Sell Order: Offloads $771K In Pure Storage Stock

A substantial insider sell was reported on October 1, by Mona Chu, Chief Accounting Officer at Pure Storage (NYSE:PSTG), based on the recent SEC filing.

What Happened: Chu's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 9,091 shares of Pure Storage. The total transaction value is $771,916.

Tracking the Thursday's morning session, Pure Storage shares are trading at $86.76, showing a up of 1.25%.

Delving into Pure Storage's Background

Pure Storage Inc is a U.S.-based company that provides an enterprise data storage platform that transforms business through a dramatic increase in performance and reduction in complexity and costs. It generates revenue from two sources: product revenue, which includes the sale of integrated storage hardware and embedded operating system software; and subscription services revenue, which includes Evergreen Storage subscriptions, a unified subscription that includes Pure as-a-Service, Cloud Block Store, and Portworx. Subscription services revenue also includes professional services offerings such as installation and implementation consulting services.

Pure Storage: Delving into Financials

Positive Revenue Trend: Examining Pure Storage's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.73% as of 31 July, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 70.19%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Pure Storage's EPS is below the industry average. The company faced challenges with a current EPS of 0.14. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.17.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 209.0, Pure Storage's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 8.71 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 85.12, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Pure Storage's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.