Frederick DiSanto Is The Independent Director of The Eastern Company (NASDAQ:EML) And They Just Picked Up 19% More Shares
Investors who take an interest in The Eastern Company (NASDAQ:EML) should definitely note that the Independent Director, Frederick DiSanto, recently paid US$16.39 per share to buy US$123k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 19%.
Check out our latest analysis for Eastern
The Last 12 Months Of Insider Transactions At Eastern
Notably, that recent purchase by Frederick DiSanto is the biggest insider purchase of Eastern shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$19.05. 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.
In the last twelve months Eastern insiders were buying shares, but not selling. They paid about US$18.60 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Eastern is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Eastern 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.0% of Eastern shares, worth about US$7.1m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Eastern Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Eastern insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Eastern has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
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.
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