Even if it's not a huge purchase, we think it was good to see that David Matter, the Director of Great Elm Group, Inc. (NASDAQ:GEG) recently shelled out US$74k to buy stock, at US$2.39 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 46%.
The Last 12 Months Of Insider Transactions At Great Elm Group
Notably, that recent purchase by David Matter is the biggest insider purchase of Great Elm Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$2.42. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Great Elm Group share holders is that insiders were buying at near the current price.
Great Elm Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$2.09. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Great Elm Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Great Elm Group insiders own about US$6.0m worth of shares (which is 8.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Great Elm Group Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Great Elm Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Great Elm Group. While conducting our analysis, we found that Great Elm Group has 3 warning signs and it would be unwise to ignore these.
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, but not derivative transactions.
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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.