Don't Ignore The Insider Selling In EMCOR Group

Some EMCOR Group, Inc. (NYSE:EME) shareholders may be a little concerned to see that the Chief Administrative Officer, Maxine Mauricio, recently sold a substantial US$1.8m worth of stock at a price of US$390 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

Check out our latest analysis for EMCOR Group

EMCOR Group Insider Transactions Over The Last Year

The insider, R. Matz, made the biggest insider sale in the last 12 months. That single transaction was for US$3.2m worth of shares at a price of US$211 each. That means that an insider was selling shares at slightly below the current price (US$399). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 8.5% of R. Matz's holding.

All up, insiders sold more shares in EMCOR Group than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of EMCOR Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. EMCOR Group insiders own about US$216m worth of shares (which is 1.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About EMCOR Group Insiders?

The stark truth for EMCOR Group is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, EMCOR Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that EMCOR Group has 1 warning sign and it would be unwise to ignore this.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.