Yahoo Finance Favourable Signals For Regional Management: Numerous Insiders Acquired Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Regional Management Corp. (NYSE:RM), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Regional Management
The Last 12 Months Of Insider Transactions At Regional Management
In the last twelve months, the biggest single purchase by an insider was when insider John Schachtel bought US$112k worth of shares at a price of US$22.41 per share. That implies that an insider found the current price of US$24.87 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 6.00k shares for US$134k. On the other hand they divested 2.78k shares, for US$69k. Overall, Regional Management insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Regional Management 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 Regional Management
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. Insiders own 8.2% of Regional Management shares, worth about US$20m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Regional Management Insider Transactions Indicate?
The fact that there have been no Regional Management insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Regional Management insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Regional Management. At Simply Wall St, we've found that Regional Management has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
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.
