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Independent Chairman of Board Walter Glazer Just Bought 26% More Shares In Escalade, Incorporated (NASDAQ:ESCA)

Simply Wall St

Those following along with Escalade, Incorporated (NASDAQ:ESCA) will no doubt be intrigued by the recent purchase of shares by Walter Glazer, Independent Chairman of Board of the company, who spent a stonking US$613k on stock at an average price of US$11.42. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 26%.

Check out our latest analysis for Escalade

Escalade Insider Transactions Over The Last Year

In fact, the recent purchase by Walter Glazer was the biggest purchase of Escalade shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$11.89. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. 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 103.66k shares for US$1.0m. On the other hand they divested 14543 shares, for US$153k. Overall, Escalade insiders were net buyers during the last year. Their average price was about US$9.92. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:ESCA Recent Insider Trading June 23rd 2020
NasdaqGM:ESCA Recent Insider Trading June 23rd 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Escalade

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Escalade insiders own about US$47m worth of shares. That equates to 28% of the company. 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 Does This Data Suggest About Escalade Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Escalade insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Escalade. While conducting our analysis, we found that Escalade has 2 warning signs and it would be unwise to ignore them.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.