Insider Spends US$100k Buying More Shares In Resources Connection

Potential Resources Connection, Inc. (NASDAQ:RGP) shareholders may wish to note that the CEO, President & Director, Kate Duchene, recently bought US$100k worth of stock, paying US$4.36 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.1%.

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The Last 12 Months Of Insider Transactions At Resources Connection

In the last twelve months, the biggest single purchase by an insider was when Independent Director Roger Carlile bought US$127k worth of shares at a price of US$5.06 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.35). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$380k for 77.92k shares. On the other hand they divested 15.20k shares, for US$72k. In total, Resources Connection insiders bought more than they sold 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!

Check out our latest analysis for Resources Connection

Resources Connection is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Resources Connection

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, Resources Connection insiders have about 2.5% of the stock, worth approximately US$3.9m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Resources Connection Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Resources Connection insiders are expecting a bright future. 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. For example - Resources Connection has 1 warning sign we think you should be aware of.

Of course Resources Connection 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.