Insiders Buying Callan JMB Might Wish They Invested More, Stock Gains 16%

Callan JMB Inc. (NASDAQ:CJMB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a US$3.2m addition to the company’s market value. Put another way, the original US$365.0k acquisition is now worth US$454.7k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 3 warning signs about Callan JMB. View them for free.

Callan JMB Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder Wayne Williams for US$253k worth of shares, at about US$4.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.16. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Callan JMB insiders bought shares during the last year, they didn't sell. 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!

See our latest analysis for Callan JMB

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.

Callan JMB Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Callan JMB. Chief Medical Officer David Croyle spent US$113k on stock, and there wasn't any selling. This makes one think the business has some good points.

Does Callan JMB Boast High Insider Ownership?

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. It's great to see that Callan JMB insiders own 71% of the company, worth about US$16m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Callan JMB Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Callan JMB. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Callan JMB. Our analysis shows 3 warning signs for Callan JMB (2 make us uncomfortable!) and we strongly recommend you look at these before investing.

Of course Callan JMB 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.