Stock Analysis

RCM Technologies, Inc. (NASDAQ:RCMT) insiders who sold US$6.5m worth of stock earlier this year are probably glad they did so as market cap slides to US$128m

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Insiders at RCM Technologies, Inc. (NASDAQ:RCMT) sold US$6.5m worth of stock at an average price of US$18.78 a share over the past year, making the most of their investment. After the stock price dropped 11% last week, the company's market value declined by US$16m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for RCM Technologies

The Last 12 Months Of Insider Transactions At RCM Technologies

Over the last year, we can see that the biggest insider sale was by the CFO, Treasurer & Secretary, Kevin Miller, for US$1.9m worth of shares, at about US$20.25 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$12.97). So it may not shed much light on insider confidence at current levels.

In the last year RCM Technologies insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:RCMT Insider Trading Volume March 14th 2023

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

Insider Ownership

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 30% of RCM Technologies shares, worth about US$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About RCM Technologies Insiders?

It doesn't really mean much that no insider has traded RCM Technologies shares in the last quarter. Our analysis of RCM Technologies insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RCM Technologies. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of RCM Technologies.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

What are the risks and opportunities for RCM Technologies?

RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia.

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  • Trading at 82.6% below our estimate of its fair value

  • Earnings grew by 91.6% over the past year


  • Earnings are forecast to decline by an average of 1.5% per year for the next 3 years

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