Insider Buying: The Carriage Services, Inc. (NYSE:CSV) Founder Just Bought 2.3% More Shares

Carriage Services, Inc. (NYSE:CSV) shareholders (or potential shareholders) will be happy to see that the Founder, Melvin Payne, recently bought a whopping US$871k worth of stock, at a price of US$30.02. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.3%.

See our latest analysis for Carriage Services

Carriage Services Insider Transactions Over The Last Year

In fact, the recent purchase by Melvin Payne was the biggest purchase of Carriage Services shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.71). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Melvin Payne was also the biggest seller.

Over the last year, we can see that insiders have bought 56.43k shares worth US$1.4m. On the other hand they divested 29.74k shares, for US$483k. In total, Carriage Services insiders bought more than they sold over the last year. The average buy price was around US$24.31. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

Carriage Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Carriage Services

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 9.4% of Carriage Services shares, worth about US$50m. 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 Does This Data Suggest About Carriage Services Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Carriage Services shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Carriage Services. For instance, we've identified 3 warning signs for Carriage Services (1 makes us a bit uncomfortable) you should be aware of.

Of course Carriage Services 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, but not derivative transactions.

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