Insider Spends US$114k Buying More Shares In Eastern

Explore Eastern's Fair Values from the Community and select yours

Potential The Eastern Company (NASDAQ:EML) shareholders may wish to note that the Independent Director, Frederick DiSanto, recently bought US$114k worth of stock, paying US$22.71 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.1%.

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Eastern Insider Transactions Over The Last Year

Notably, that recent purchase by Frederick DiSanto is the biggest insider purchase of Eastern shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$23.35. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Eastern insiders decided to buy shares at close to current prices.

In the last twelve months Eastern insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Eastern

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Eastern

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.9% of Eastern shares, worth about US$9.3m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Eastern Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Eastern insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Eastern.

But note: Eastern may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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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.