Positive Signs As Multiple Insiders Buy Montrose Environmental Group Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Montrose Environmental Group, Inc. (NYSE:MEG), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Montrose Environmental Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director J. Miguel de Castro bought US$181k worth of shares at a price of US$18.07 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$25.19. 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.

Montrose Environmental Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Montrose Environmental Group

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Montrose Environmental Group insiders own 6.9% of the company, worth about US$61m. 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 Montrose Environmental Group Insiders?

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. Overall we don't see anything to make us think Montrose Environmental Group insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Montrose Environmental Group, you should check out this free report on analyst forecasts for the company.

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.