We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Emclaire Financial Corp (NASDAQ:EMCF).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Emclaire Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the , Matthew Lucco, for US$176k worth of shares, at about US$36.00 per share. So we know that an insider sold shares at around the present share price of US$30.24. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign. Matthew Lucco was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 8691 shares worth US$267k. But insiders sold 4890 shares worth US$176k. Overall, Emclaire Financial insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Emclaire Financial Insiders Bought Stock Recently
We saw some Emclaire Financial insider buying shares in the last three months. Director Deanna McCarrier purchased US$30k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Emclaire Financial Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Emclaire Financial insiders own about US$14m worth of shares. That equates to 17% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Emclaire Financial Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn’t worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Emclaire Financial and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.