RCM Technologies, Inc. (NASDAQ:RCMT) shareholders (or potential shareholders) will be happy to see that the Executive Chairman & President, Bradley Vizi, recently bought a whopping US$1.0m worth of stock, at a price of US$1.20. That purchase boosted their holding by 523%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At RCM Technologies
Notably, that recent purchase by Bradley Vizi is the biggest insider purchase of RCM Technologies shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$1.80), 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.
RCM Technologies insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of RCM Technologies
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 12% of RCM Technologies shares, worth about US$2.8m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At RCM Technologies Tell Us?
It's certainly positive to see the recent insider purchases. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that RCM Technologies 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 RCM Technologies. To that end, you should learn about the 4 warning signs we've spotted with RCM Technologies (including 1 which is significant).
But note: RCM Technologies 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, but not derivative transactions.
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