Some of the losses seen by insiders who purchased US$2.5m worth of Montrose Environmental Group, Inc. (NYSE:MEG) shares over the past year were recovered after the stock increased by 9.6% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$57k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Montrose Environmental Group Insider Transactions Over The Last Year
The Independent Director, J. Miguel de Castro, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$58.76 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$43.36. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was J. Miguel de Castro.
Happily, we note that in the last year insiders paid US$2.5m for 57.42k shares. On the other hand they divested 20.00k shares, for US$1.2m. In total, Montrose Environmental Group insiders bought more than they sold over the last year. 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!
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.
Does Montrose Environmental Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Montrose Environmental Group insiders own 8.3% of the company, worth about US$107m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Montrose Environmental Group Tell Us?
The fact that there have been no Montrose Environmental Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Montrose Environmental Group insiders feel good about the company's 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. For example - Montrose Environmental Group has 2 warning signs we think you should be aware of.
Of course Montrose Environmental Group 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, 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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