Montrose Environmental Group Gains 10%, Insider Trades Reap Benefit

Last week, Montrose Environmental Group, Inc. (NYSE:MEG) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a US$156m increase in the company's market worth, implying a 36% gain on their initial purchase. In other words, the original US$429.5k purchase is now worth US$582.0k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Montrose Environmental Group

Montrose Environmental Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director J. Miguel de Castro for US$329k worth of shares, at about US$32.94 per share. Even though the purchase was made at a significantly lower price than the recent price (US$43.11), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Montrose Environmental Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Montrose Environmental Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.8% of Montrose Environmental Group shares, worth about US$100m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Montrose Environmental Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Montrose Environmental Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Montrose Environmental Group and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Montrose Environmental Group that deserve your attention before buying any shares.

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 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.