This Insider Has Just Sold Shares In Emerson Electric

We wouldn't blame Emerson Electric Co. (NYSE:EMR) shareholders if they were a little worried about the fact that Michael Train, the Senior VP & Chief Sustainability Officer recently netted about US$3.4m selling shares at an average price of US$119. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Emerson Electric

Over the last year, we can see that the biggest insider sale was by the President, Surendralal Karsanbhai, for US$6.8m worth of shares, at about US$131 per share. That means that an insider was selling shares at around the current price of US$120. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Emerson Electric insiders didn't buy any shares over the last year. 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!

Check out our latest analysis for Emerson Electric

I will like Emerson Electric better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Emerson Electric insiders own 0.3% of the company, worth about US$236m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Emerson Electric Tell Us?

Insiders sold Emerson Electric shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Emerson Electric. You'd be interested to know, that we found 2 warning signs for Emerson Electric and we suggest you have a look.

Of course Emerson Electric may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.