Some EMCOR Group, Inc. (NYSE:EME) shareholders may be a little concerned to see that the Independent Director, Richard Hamm, recently sold a substantial US$531k worth of stock at a price of US$106 per share. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At EMCOR Group
The Executive Vice President of Shared Services, R. Matz, made the biggest insider sale in the last 12 months. That single transaction was for US$877k worth of shares at a price of US$87.74 each. That means that even when the share price was below the current price of US$115, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 5.1% of R. Matz's holding.
EMCOR Group insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like EMCOR Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does EMCOR Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that EMCOR Group insiders own 1.6% of the company, worth about US$99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At EMCOR Group Tell Us?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 4 warning signs for EMCOR Group you should know about.
But note: EMCOR Group 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, but not derivative transactions.
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