This Insider Has Just Sold Shares In EMCOR Group

Some EMCOR Group, Inc. (NYSE:EME) shareholders may be a little concerned to see that the Independent Director, John Altmeyer, recently sold a substantial US$810k worth of stock at a price of US$405 per share. However, that sale only accounted for 8.1% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for EMCOR Group

The Last 12 Months Of Insider Transactions At EMCOR Group

The Chairman, Anthony Guzzi, made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$320 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$388. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 2.6% of Anthony Guzzi's stake.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of EMCOR Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. EMCOR Group insiders own 1.2% of the company, currently worth about US$219m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At EMCOR Group Tell Us?

An insider hasn't bought EMCOR Group stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EMCOR Group. Every company has risks, and we've spotted 1 warning sign for EMCOR Group you should know about.

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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.