Despite Regional Management's Pullback, Insiders Still Gained US$38k

Insiders who purchased Regional Management Corp. (NYSE:RM) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. After taking the recent loss into consideration, the US$133.6k worth of stock they bought is now worth US$172.0k, indicating that their investment yielded a positive return.

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.

Check out our latest analysis for Regional Management

The Last 12 Months Of Insider Transactions At Regional Management

Over the last year, we can see that the biggest insider purchase was by insider John Schachtel for US$112k worth of shares, at about US$22.41 per share. Even though the purchase was made at a significantly lower price than the recent price (US$28.67), 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.

Regional Management insiders may have bought shares in the last year, but they didn't sell any. 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!

Regional Management 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.

Does Regional Management Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Regional Management insiders own 8.8% of the company, worth about US$26m. 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 Do The Regional Management Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Regional Management shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Regional Management and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Regional Management (1 doesn't sit too well with us!) that we believe deserve your full attention.

But note: Regional Management may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.